Correlation Between STANDARD CHARTERED and CENTUM INVESTMENT
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By analyzing existing cross correlation between STANDARD CHARTERED BANK and CENTUM INVESTMENT PANY, you can compare the effects of market volatilities on STANDARD CHARTERED and CENTUM INVESTMENT 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 STANDARD CHARTERED with a short position of CENTUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD CHARTERED and CENTUM INVESTMENT.
Diversification Opportunities for STANDARD CHARTERED and CENTUM INVESTMENT
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between STANDARD and CENTUM is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD CHARTERED BANK and CENTUM INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTUM INVESTMENT PANY and STANDARD CHARTERED 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 STANDARD CHARTERED BANK are associated (or correlated) with CENTUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTUM INVESTMENT PANY has no effect on the direction of STANDARD CHARTERED i.e., STANDARD CHARTERED and CENTUM INVESTMENT go up and down completely randomly.
Pair Corralation between STANDARD CHARTERED and CENTUM INVESTMENT
Assuming the 90 days trading horizon STANDARD CHARTERED BANK is expected to under-perform the CENTUM INVESTMENT. But the stock apears to be less risky and, when comparing its historical volatility, STANDARD CHARTERED BANK is 2.89 times less risky than CENTUM INVESTMENT. The stock trades about -0.07 of its potential returns per unit of risk. The CENTUM INVESTMENT PANY is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,020 in CENTUM INVESTMENT PANY on November 3, 2024 and sell it today you would earn a total of 50.00 from holding CENTUM INVESTMENT PANY or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STANDARD CHARTERED BANK vs. CENTUM INVESTMENT PANY
Performance |
| Timeline |
| STANDARD CHARTERED BANK |
| CENTUM INVESTMENT PANY |
STANDARD CHARTERED and CENTUM INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD CHARTERED and CENTUM INVESTMENT
The main advantage of trading using opposite STANDARD CHARTERED and CENTUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD CHARTERED position performs unexpectedly, CENTUM INVESTMENT 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 CENTUM INVESTMENT will offset losses from the drop in CENTUM INVESTMENT's long position.| STANDARD CHARTERED vs. DIAMOND TRUST BANK | STANDARD CHARTERED vs. CARBACID INVESTMENTS LTD | STANDARD CHARTERED vs. CENTUM INVESTMENT PANY | STANDARD CHARTERED vs. HOMEBOYZ ENTERTAINMENT PLC |
| CENTUM INVESTMENT vs. CARBACID INVESTMENTS LTD | CENTUM INVESTMENT vs. KENYA ORCHARDS LTD | CENTUM INVESTMENT vs. NAIROBI BUSINESS VENTURES | CENTUM INVESTMENT vs. KENYA RE INSURANCE PORATION |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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