Correlation Between TOTALENERGIES MARKETING and EAST AFRICAN
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By analyzing existing cross correlation between TOTALENERGIES MARKETING KENYA and EAST AFRICAN BREWERIES, you can compare the effects of market volatilities on TOTALENERGIES MARKETING and EAST AFRICAN 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 TOTALENERGIES MARKETING with a short position of EAST AFRICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTALENERGIES MARKETING and EAST AFRICAN.
Diversification Opportunities for TOTALENERGIES MARKETING and EAST AFRICAN
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TOTALENERGIES and EAST is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding TOTALENERGIES MARKETING KENYA and EAST AFRICAN BREWERIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST AFRICAN BREWERIES and TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING KENYA are associated (or correlated) with EAST AFRICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST AFRICAN BREWERIES has no effect on the direction of TOTALENERGIES MARKETING i.e., TOTALENERGIES MARKETING and EAST AFRICAN go up and down completely randomly.
Pair Corralation between TOTALENERGIES MARKETING and EAST AFRICAN
Assuming the 90 days trading horizon TOTALENERGIES MARKETING is expected to generate 1.25 times less return on investment than EAST AFRICAN. In addition to that, TOTALENERGIES MARKETING is 1.21 times more volatile than EAST AFRICAN BREWERIES. It trades about 0.04 of its total potential returns per unit of risk. EAST AFRICAN BREWERIES is currently generating about 0.06 per unit of volatility. If you would invest 12,375 in EAST AFRICAN BREWERIES on September 3, 2024 and sell it today you would earn a total of 4,200 from holding EAST AFRICAN BREWERIES or generate 33.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOTALENERGIES MARKETING KENYA vs. EAST AFRICAN BREWERIES
Performance |
| Timeline |
| TOTALENERGIES MARKETING |
| EAST AFRICAN BREWERIES |
TOTALENERGIES MARKETING and EAST AFRICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTALENERGIES MARKETING and EAST AFRICAN
The main advantage of trading using opposite TOTALENERGIES MARKETING and EAST AFRICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTALENERGIES MARKETING position performs unexpectedly, EAST AFRICAN 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 EAST AFRICAN will offset losses from the drop in EAST AFRICAN's long position.| TOTALENERGIES MARKETING vs. ABSA BANK OF | TOTALENERGIES MARKETING vs. CENTUM INVESTMENT PANY | TOTALENERGIES MARKETING vs. KENYA RE INSURANCE PORATION | TOTALENERGIES MARKETING vs. CARBACID INVESTMENTS LTD |
| EAST AFRICAN vs. CIC INSURANCE GROUP | EAST AFRICAN vs. NATION MEDIA GROUP | EAST AFRICAN vs. HOMEBOYZ ENTERTAINMENT PLC | EAST AFRICAN vs. CARBACID INVESTMENTS LTD |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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