Correlation Between SASINI and KENYA ORCHARDS
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By analyzing existing cross correlation between SASINI LTD and KENYA ORCHARDS LTD, you can compare the effects of market volatilities on SASINI and KENYA ORCHARDS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SASINI with a short position of KENYA ORCHARDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASINI and KENYA ORCHARDS.
Diversification Opportunities for SASINI and KENYA ORCHARDS
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SASINI and KENYA is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SASINI LTD and KENYA ORCHARDS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENYA ORCHARDS LTD and SASINI is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SASINI LTD are associated (or correlated) with KENYA ORCHARDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENYA ORCHARDS LTD has no effect on the direction of SASINI i.e., SASINI and KENYA ORCHARDS go up and down completely randomly.
Pair Corralation between SASINI and KENYA ORCHARDS
Assuming the 90 days trading horizon SASINI LTD is expected to under-perform the KENYA ORCHARDS. But the stock apears to be less risky and, when comparing its historical volatility, SASINI LTD is 1.93 times less risky than KENYA ORCHARDS. The stock trades about -0.08 of its potential returns per unit of risk. The KENYA ORCHARDS LTD is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 1,950 in KENYA ORCHARDS LTD on September 4, 2024 and sell it today you would earn a total of 5,050 from holding KENYA ORCHARDS LTD or generate 258.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
SASINI LTD vs. KENYA ORCHARDS LTD
Performance |
| Timeline |
| SASINI LTD |
| KENYA ORCHARDS LTD |
SASINI and KENYA ORCHARDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASINI and KENYA ORCHARDS
The main advantage of trading using opposite SASINI and KENYA ORCHARDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASINI position performs unexpectedly, KENYA ORCHARDS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KENYA ORCHARDS will offset losses from the drop in KENYA ORCHARDS's long position.| SASINI vs. EQUITY GROUP HOLDINGS | SASINI vs. ABSA BANK OF | SASINI vs. BRITISH AMERICAN TOBACCO | SASINI vs. CO OPERATIVE BANK OF |
| KENYA ORCHARDS vs. EQUITY GROUP HOLDINGS | KENYA ORCHARDS vs. ABSA BANK OF | KENYA ORCHARDS vs. BRITISH AMERICAN TOBACCO | KENYA ORCHARDS vs. CO OPERATIVE BANK OF |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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