Correlation Between TOTALENERGIES MARKETING and SAFARICOM PLC
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By analyzing existing cross correlation between TOTALENERGIES MARKETING KENYA and SAFARICOM PLC, you can compare the effects of market volatilities on TOTALENERGIES MARKETING and SAFARICOM 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 TOTALENERGIES MARKETING with a short position of SAFARICOM PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTALENERGIES MARKETING and SAFARICOM PLC.
Diversification Opportunities for TOTALENERGIES MARKETING and SAFARICOM PLC
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TOTALENERGIES and SAFARICOM is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding TOTALENERGIES MARKETING KENYA and SAFARICOM PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFARICOM PLC 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 SAFARICOM PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFARICOM PLC has no effect on the direction of TOTALENERGIES MARKETING i.e., TOTALENERGIES MARKETING and SAFARICOM PLC go up and down completely randomly.
Pair Corralation between TOTALENERGIES MARKETING and SAFARICOM PLC
Assuming the 90 days trading horizon TOTALENERGIES MARKETING KENYA is expected to generate 1.91 times more return on investment than SAFARICOM PLC. However, TOTALENERGIES MARKETING is 1.91 times more volatile than SAFARICOM PLC. It trades about -0.12 of its potential returns per unit of risk. SAFARICOM PLC is currently generating about -0.38 per unit of risk. If you would invest 2,165 in TOTALENERGIES MARKETING KENYA on August 28, 2024 and sell it today you would lose (165.00) from holding TOTALENERGIES MARKETING KENYA or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOTALENERGIES MARKETING KENYA vs. SAFARICOM PLC
Performance |
| Timeline |
| TOTALENERGIES MARKETING |
| SAFARICOM PLC |
TOTALENERGIES MARKETING and SAFARICOM PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTALENERGIES MARKETING and SAFARICOM PLC
The main advantage of trading using opposite TOTALENERGIES MARKETING and SAFARICOM PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTALENERGIES MARKETING position performs unexpectedly, SAFARICOM 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 SAFARICOM PLC will offset losses from the drop in SAFARICOM PLC's long position.The idea behind TOTALENERGIES MARKETING KENYA and SAFARICOM PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SAFARICOM PLC vs. HOMEBOYZ ENTERTAINMENT PLC | SAFARICOM PLC vs. NATION MEDIA GROUP | SAFARICOM PLC vs. HOME AFRIKA LTD | SAFARICOM PLC vs. TOTALENERGIES MARKETING KENYA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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