Correlation Between STANDARD CHARTERED and NATIONAL BREWERIES
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By analyzing existing cross correlation between STANDARD CHARTERED BANK and NATIONAL BREWERIES PLC, you can compare the effects of market volatilities on STANDARD CHARTERED and NATIONAL BREWERIES 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 NATIONAL BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD CHARTERED and NATIONAL BREWERIES.
Diversification Opportunities for STANDARD CHARTERED and NATIONAL BREWERIES
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between STANDARD and NATIONAL is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD CHARTERED BANK and NATIONAL BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL BREWERIES PLC 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 NATIONAL BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL BREWERIES PLC has no effect on the direction of STANDARD CHARTERED i.e., STANDARD CHARTERED and NATIONAL BREWERIES go up and down completely randomly.
Pair Corralation between STANDARD CHARTERED and NATIONAL BREWERIES
Assuming the 90 days trading horizon STANDARD CHARTERED BANK is expected to generate 0.08 times more return on investment than NATIONAL BREWERIES. However, STANDARD CHARTERED BANK is 13.14 times less risky than NATIONAL BREWERIES. It trades about -0.46 of its potential returns per unit of risk. NATIONAL BREWERIES PLC is currently generating about -0.22 per unit of risk. If you would invest 361.00 in STANDARD CHARTERED BANK on August 28, 2024 and sell it today you would lose (12.00) from holding STANDARD CHARTERED BANK or give up 3.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STANDARD CHARTERED BANK vs. NATIONAL BREWERIES PLC
Performance |
| Timeline |
| STANDARD CHARTERED BANK |
| NATIONAL BREWERIES PLC |
STANDARD CHARTERED and NATIONAL BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD CHARTERED and NATIONAL BREWERIES
The main advantage of trading using opposite STANDARD CHARTERED and NATIONAL BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD CHARTERED position performs unexpectedly, NATIONAL BREWERIES 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 NATIONAL BREWERIES will offset losses from the drop in NATIONAL BREWERIES's long position.| STANDARD CHARTERED vs. AIRTEL NETWORKS ZAMBIA | STANDARD CHARTERED vs. NATIONAL BREWERIES PLC | STANDARD CHARTERED vs. ZAMBIA REINSURANCE PLC |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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