Correlation Between SEED and CAFCA
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By analyzing existing cross correlation between SEED LIMITED and CAFCA LIMITED, you can compare the effects of market volatilities on SEED and CAFCA 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 SEED with a short position of CAFCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEED and CAFCA.
Diversification Opportunities for SEED and CAFCA
Excellent diversification
The 3 months correlation between SEED and CAFCA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SEED LIMITED and CAFCA LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAFCA LIMITED and SEED 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 SEED LIMITED are associated (or correlated) with CAFCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAFCA LIMITED has no effect on the direction of SEED i.e., SEED and CAFCA go up and down completely randomly.
Pair Corralation between SEED and CAFCA
If you would invest 205,000 in CAFCA LIMITED on October 11, 2024 and sell it today you would earn a total of 0.00 from holding CAFCA LIMITED or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
SEED LIMITED vs. CAFCA LIMITED
Performance |
| Timeline |
| SEED LIMITED |
| CAFCA LIMITED |
SEED and CAFCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEED and CAFCA
The main advantage of trading using opposite SEED and CAFCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEED position performs unexpectedly, CAFCA 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 CAFCA will offset losses from the drop in CAFCA's long position.| SEED vs. STAR AFRICA PORATION | SEED vs. CAFCA LIMITED | SEED vs. FIRST MUTUAL PROPERTIES | SEED vs. AFRICAN DISTILLERS LIMITED |
| CAFCA vs. BRITISH AMERICAN TOBACCO | CAFCA vs. TANGANDA TEA PANY | CAFCA vs. ZB FINANCIAL HOLDINGS | CAFCA vs. Cass Saddle Agriculture |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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