Correlation Between SUNBIRD HOTELS and STANDARD BANK
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By analyzing existing cross correlation between SUNBIRD HOTELS TOURISM and STANDARD BANK LIMITED, you can compare the effects of market volatilities on SUNBIRD HOTELS and STANDARD BANK 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 SUNBIRD HOTELS with a short position of STANDARD BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNBIRD HOTELS and STANDARD BANK.
Diversification Opportunities for SUNBIRD HOTELS and STANDARD BANK
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SUNBIRD and STANDARD is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SUNBIRD HOTELS TOURISM and STANDARD BANK LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANDARD BANK LIMITED and SUNBIRD HOTELS 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 SUNBIRD HOTELS TOURISM are associated (or correlated) with STANDARD BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANDARD BANK LIMITED has no effect on the direction of SUNBIRD HOTELS i.e., SUNBIRD HOTELS and STANDARD BANK go up and down completely randomly.
Pair Corralation between SUNBIRD HOTELS and STANDARD BANK
Assuming the 90 days trading horizon SUNBIRD HOTELS is expected to generate 1.15 times less return on investment than STANDARD BANK. In addition to that, SUNBIRD HOTELS is 1.19 times more volatile than STANDARD BANK LIMITED. It trades about 0.13 of its total potential returns per unit of risk. STANDARD BANK LIMITED is currently generating about 0.17 per unit of volatility. If you would invest 220,000 in STANDARD BANK LIMITED on November 2, 2024 and sell it today you would earn a total of 470,002 from holding STANDARD BANK LIMITED or generate 213.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUNBIRD HOTELS TOURISM vs. STANDARD BANK LIMITED
Performance |
| Timeline |
| SUNBIRD HOTELS TOURISM |
| STANDARD BANK LIMITED |
SUNBIRD HOTELS and STANDARD BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNBIRD HOTELS and STANDARD BANK
The main advantage of trading using opposite SUNBIRD HOTELS and STANDARD BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNBIRD HOTELS position performs unexpectedly, STANDARD BANK 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 STANDARD BANK will offset losses from the drop in STANDARD BANK's long position.| SUNBIRD HOTELS vs. BLANTYRE HOTELS LIMITED | SUNBIRD HOTELS vs. NATIONAL INVESTMENT TRUST | SUNBIRD HOTELS vs. MALAWI PROPERTY INVESTMENT |
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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