Correlation Between STANDARD BANK and MALAWI PROPERTY
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By analyzing existing cross correlation between STANDARD BANK LIMITED and MALAWI PROPERTY INVESTMENT, you can compare the effects of market volatilities on STANDARD BANK and MALAWI PROPERTY 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 BANK with a short position of MALAWI PROPERTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD BANK and MALAWI PROPERTY.
Diversification Opportunities for STANDARD BANK and MALAWI PROPERTY
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between STANDARD and MALAWI is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD BANK LIMITED and MALAWI PROPERTY INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MALAWI PROPERTY INVE and STANDARD BANK 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 BANK LIMITED are associated (or correlated) with MALAWI PROPERTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MALAWI PROPERTY INVE has no effect on the direction of STANDARD BANK i.e., STANDARD BANK and MALAWI PROPERTY go up and down completely randomly.
Pair Corralation between STANDARD BANK and MALAWI PROPERTY
Assuming the 90 days trading horizon STANDARD BANK is expected to generate 1.2 times less return on investment than MALAWI PROPERTY. But when comparing it to its historical volatility, STANDARD BANK LIMITED is 1.23 times less risky than MALAWI PROPERTY. It trades about 0.21 of its potential returns per unit of risk. MALAWI PROPERTY INVESTMENT is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,487 in MALAWI PROPERTY INVESTMENT on August 30, 2024 and sell it today you would earn a total of 163.00 from holding MALAWI PROPERTY INVESTMENT or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STANDARD BANK LIMITED vs. MALAWI PROPERTY INVESTMENT
Performance |
| Timeline |
| STANDARD BANK LIMITED |
| MALAWI PROPERTY INVE |
STANDARD BANK and MALAWI PROPERTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD BANK and MALAWI PROPERTY
The main advantage of trading using opposite STANDARD BANK and MALAWI PROPERTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD BANK position performs unexpectedly, MALAWI PROPERTY 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 MALAWI PROPERTY will offset losses from the drop in MALAWI PROPERTY's long position.| STANDARD BANK vs. NBS BANK LIMITED | STANDARD BANK vs. MALAWI PROPERTY INVESTMENT | STANDARD BANK vs. NICO HOLDINGS LIMITED | STANDARD BANK vs. BLANTYRE HOTELS LIMITED |
| MALAWI PROPERTY vs. BLANTYRE HOTELS LIMITED | MALAWI PROPERTY vs. SUNBIRD HOTELS TOURISM | MALAWI PROPERTY vs. NATIONAL INVESTMENT TRUST | MALAWI PROPERTY vs. NBS BANK 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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