Correlation Between STANDARD ALLIANCE and AFROMEDIA PLC
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By analyzing existing cross correlation between STANDARD ALLIANCE INSURANCE and AFROMEDIA PLC, you can compare the effects of market volatilities on STANDARD ALLIANCE and AFROMEDIA PLC 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 ALLIANCE with a short position of AFROMEDIA PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD ALLIANCE and AFROMEDIA PLC.
Diversification Opportunities for STANDARD ALLIANCE and AFROMEDIA PLC
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STANDARD and AFROMEDIA is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD ALLIANCE INSURANCE and AFROMEDIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFROMEDIA PLC and STANDARD ALLIANCE 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 ALLIANCE INSURANCE are associated (or correlated) with AFROMEDIA PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFROMEDIA PLC has no effect on the direction of STANDARD ALLIANCE i.e., STANDARD ALLIANCE and AFROMEDIA PLC go up and down completely randomly.
Pair Corralation between STANDARD ALLIANCE and AFROMEDIA PLC
If you would invest 20.00 in AFROMEDIA PLC on September 3, 2024 and sell it today you would earn a total of 4.00 from holding AFROMEDIA PLC or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 80.29% |
| Values | Daily Returns |
STANDARD ALLIANCE INSURANCE vs. AFROMEDIA PLC
Performance |
| Timeline |
| STANDARD ALLIANCE |
| AFROMEDIA PLC |
STANDARD ALLIANCE and AFROMEDIA PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD ALLIANCE and AFROMEDIA PLC
The main advantage of trading using opposite STANDARD ALLIANCE and AFROMEDIA PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD ALLIANCE position performs unexpectedly, AFROMEDIA PLC 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 AFROMEDIA PLC will offset losses from the drop in AFROMEDIA PLC's long position.| STANDARD ALLIANCE vs. CONSOLIDATED HALLMARK INSURANCE | STANDARD ALLIANCE vs. SECURE ELECTRONIC TECHNOLOGY | STANDARD ALLIANCE vs. ZENITH BANK PLC | STANDARD ALLIANCE vs. INDUSTRIAL MEDICAL GASES |
| AFROMEDIA PLC vs. UNITY BANK PLC | AFROMEDIA PLC vs. FIDSON HEALTHCARE PLC | AFROMEDIA PLC vs. NIGERIAN BREWERIES PLC | AFROMEDIA PLC vs. STANDARD ALLIANCE INSURANCE |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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