Correlation Between SEED and MEIKLES AFRICA
Can any of the company-specific risk be diversified away by investing in both SEED and MEIKLES AFRICA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SEED and MEIKLES AFRICA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEED LIMITED and MEIKLES AFRICA LIMITED, you can compare the effects of market volatilities on SEED and MEIKLES AFRICA 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 MEIKLES AFRICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEED and MEIKLES AFRICA.
Diversification Opportunities for SEED and MEIKLES AFRICA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SEED and MEIKLES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEED LIMITED and MEIKLES AFRICA LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEIKLES AFRICA 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 MEIKLES AFRICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEIKLES AFRICA has no effect on the direction of SEED i.e., SEED and MEIKLES AFRICA go up and down completely randomly.
Pair Corralation between SEED and MEIKLES AFRICA
If you would invest (100.00) in MEIKLES AFRICA LIMITED on October 11, 2024 and sell it today you would earn a total of 100.00 from holding MEIKLES AFRICA LIMITED or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SEED LIMITED vs. MEIKLES AFRICA LIMITED
Performance |
| Timeline |
| SEED LIMITED |
| MEIKLES AFRICA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SEED and MEIKLES AFRICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEED and MEIKLES AFRICA
The main advantage of trading using opposite SEED and MEIKLES AFRICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEED position performs unexpectedly, MEIKLES AFRICA 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 MEIKLES AFRICA will offset losses from the drop in MEIKLES AFRICA's long position.| SEED vs. STAR AFRICA PORATION | SEED vs. CAFCA LIMITED | SEED vs. FIRST MUTUAL PROPERTIES | SEED vs. AFRICAN DISTILLERS LIMITED |
| MEIKLES AFRICA vs. STAR AFRICA PORATION | MEIKLES AFRICA vs. CAFCA LIMITED | MEIKLES AFRICA vs. FIRST MUTUAL PROPERTIES | MEIKLES AFRICA vs. AFRICAN DISTILLERS LIMITED |
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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