Correlation Between TRANSCORP HOTELS and AFRICAN ALLIANCE
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By analyzing existing cross correlation between TRANSCORP HOTELS PLC and AFRICAN ALLIANCE INSURANCE, you can compare the effects of market volatilities on TRANSCORP HOTELS and AFRICAN ALLIANCE 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 TRANSCORP HOTELS with a short position of AFRICAN ALLIANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANSCORP HOTELS and AFRICAN ALLIANCE.
Diversification Opportunities for TRANSCORP HOTELS and AFRICAN ALLIANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TRANSCORP and AFRICAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCORP HOTELS PLC and AFRICAN ALLIANCE INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFRICAN ALLIANCE INS and TRANSCORP 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 TRANSCORP HOTELS PLC are associated (or correlated) with AFRICAN ALLIANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFRICAN ALLIANCE INS has no effect on the direction of TRANSCORP HOTELS i.e., TRANSCORP HOTELS and AFRICAN ALLIANCE go up and down completely randomly.
Pair Corralation between TRANSCORP HOTELS and AFRICAN ALLIANCE
If you would invest 20.00 in AFRICAN ALLIANCE INSURANCE on August 28, 2024 and sell it today you would earn a total of 0.00 from holding AFRICAN ALLIANCE INSURANCE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRANSCORP HOTELS PLC vs. AFRICAN ALLIANCE INSURANCE
Performance |
| Timeline |
| TRANSCORP HOTELS PLC |
| AFRICAN ALLIANCE INS |
TRANSCORP HOTELS and AFRICAN ALLIANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANSCORP HOTELS and AFRICAN ALLIANCE
The main advantage of trading using opposite TRANSCORP HOTELS and AFRICAN ALLIANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANSCORP HOTELS position performs unexpectedly, AFRICAN ALLIANCE 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 AFRICAN ALLIANCE will offset losses from the drop in AFRICAN ALLIANCE's long position.| TRANSCORP HOTELS vs. VETIVA BANKING ETF | TRANSCORP HOTELS vs. CONSOLIDATED HALLMARK INSURANCE | TRANSCORP HOTELS vs. FIDELITY BANK PLC | TRANSCORP HOTELS vs. GOLDLINK INSURANCE PLC |
| AFRICAN ALLIANCE vs. GUINEA INSURANCE PLC | AFRICAN ALLIANCE vs. MEYER PLC | AFRICAN ALLIANCE vs. VETIVA INDUSTRIAL ETF |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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