Correlation Between WPP SCANGROUP and KENYA RE
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By analyzing existing cross correlation between WPP SCANGROUP PLC and KENYA RE INSURANCE PORATION, you can compare the effects of market volatilities on WPP SCANGROUP and KENYA RE 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 WPP SCANGROUP with a short position of KENYA RE. Check out your portfolio center. Please also check ongoing floating volatility patterns of WPP SCANGROUP and KENYA RE.
Diversification Opportunities for WPP SCANGROUP and KENYA RE
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between WPP and KENYA is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding WPP SCANGROUP PLC and KENYA RE INSURANCE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENYA RE INSURANCE and WPP SCANGROUP 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 WPP SCANGROUP PLC are associated (or correlated) with KENYA RE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENYA RE INSURANCE has no effect on the direction of WPP SCANGROUP i.e., WPP SCANGROUP and KENYA RE go up and down completely randomly.
Pair Corralation between WPP SCANGROUP and KENYA RE
Assuming the 90 days trading horizon WPP SCANGROUP PLC is expected to generate 2.18 times more return on investment than KENYA RE. However, WPP SCANGROUP is 2.18 times more volatile than KENYA RE INSURANCE PORATION. It trades about 0.01 of its potential returns per unit of risk. KENYA RE INSURANCE PORATION is currently generating about -0.17 per unit of risk. If you would invest 225.00 in WPP SCANGROUP PLC on August 24, 2024 and sell it today you would lose (3.00) from holding WPP SCANGROUP PLC or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WPP SCANGROUP PLC vs. KENYA RE INSURANCE PORATION
Performance |
| Timeline |
| WPP SCANGROUP PLC |
| KENYA RE INSURANCE |
WPP SCANGROUP and KENYA RE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WPP SCANGROUP and KENYA RE
The main advantage of trading using opposite WPP SCANGROUP and KENYA RE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WPP SCANGROUP position performs unexpectedly, KENYA RE 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 KENYA RE will offset losses from the drop in KENYA RE's long position.| WPP SCANGROUP vs. STANDARD CHARTERED BANK | WPP SCANGROUP vs. KENYA RE INSURANCE PORATION | WPP SCANGROUP vs. TOTALENERGIES MARKETING KENYA | WPP SCANGROUP vs. BRITISH AMERICAN TOBACCO |
| KENYA RE vs. CIC INSURANCE GROUP | KENYA RE vs. STANDARD CHARTERED BANK | KENYA RE vs. DIAMOND TRUST BANK | KENYA RE vs. ABSA BANK OF |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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