Correlation Between STANBIC BANK and AIRTEL UGANDA
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By analyzing existing cross correlation between STANBIC BANK HOLDINGS and AIRTEL UGANDA LIMITED, you can compare the effects of market volatilities on STANBIC BANK and AIRTEL UGANDA 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 STANBIC BANK with a short position of AIRTEL UGANDA. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANBIC BANK and AIRTEL UGANDA.
Diversification Opportunities for STANBIC BANK and AIRTEL UGANDA
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STANBIC and AIRTEL is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding STANBIC BANK HOLDINGS and AIRTEL UGANDA LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRTEL UGANDA LIMITED and STANBIC BANK 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 STANBIC BANK HOLDINGS are associated (or correlated) with AIRTEL UGANDA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRTEL UGANDA LIMITED has no effect on the direction of STANBIC BANK i.e., STANBIC BANK and AIRTEL UGANDA go up and down completely randomly.
Pair Corralation between STANBIC BANK and AIRTEL UGANDA
Assuming the 90 days trading horizon STANBIC BANK HOLDINGS is expected to under-perform the AIRTEL UGANDA. But the stock apears to be less risky and, when comparing its historical volatility, STANBIC BANK HOLDINGS is 1.64 times less risky than AIRTEL UGANDA. The stock trades about -0.34 of its potential returns per unit of risk. The AIRTEL UGANDA LIMITED is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 6,400 in AIRTEL UGANDA LIMITED on August 30, 2024 and sell it today you would lose (100.00) from holding AIRTEL UGANDA LIMITED or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
STANBIC BANK HOLDINGS vs. AIRTEL UGANDA LIMITED
Performance |
| Timeline |
| STANBIC BANK HOLDINGS |
| AIRTEL UGANDA LIMITED |
STANBIC BANK and AIRTEL UGANDA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANBIC BANK and AIRTEL UGANDA
The main advantage of trading using opposite STANBIC BANK and AIRTEL UGANDA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANBIC BANK position performs unexpectedly, AIRTEL UGANDA 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 AIRTEL UGANDA will offset losses from the drop in AIRTEL UGANDA's long position.| STANBIC BANK vs. CENTUM INVESTMENT PANY | STANBIC BANK vs. BRITISH AMERICAN TOBACCO | STANBIC BANK vs. EAST AFRICAN BREWERIES | STANBIC BANK vs. QUALITY CHEMICAL INDUSTRIES |
| AIRTEL UGANDA vs. EAST AFRICAN BREWERIES | AIRTEL UGANDA vs. CENTUM INVESTMENT PANY | AIRTEL UGANDA vs. BRITISH AMERICAN TOBACCO | AIRTEL UGANDA vs. QUALITY CHEMICAL INDUSTRIES |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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