Correlation Between UCHUMI SUPERMARKET and CENTUM INVESTMENT
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By analyzing existing cross correlation between UCHUMI SUPERMARKET PLC and CENTUM INVESTMENT PANY, you can compare the effects of market volatilities on UCHUMI SUPERMARKET and CENTUM INVESTMENT 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 UCHUMI SUPERMARKET with a short position of CENTUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of UCHUMI SUPERMARKET and CENTUM INVESTMENT.
Diversification Opportunities for UCHUMI SUPERMARKET and CENTUM INVESTMENT
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UCHUMI and CENTUM is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding UCHUMI SUPERMARKET PLC and CENTUM INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTUM INVESTMENT PANY and UCHUMI SUPERMARKET 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 UCHUMI SUPERMARKET PLC are associated (or correlated) with CENTUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTUM INVESTMENT PANY has no effect on the direction of UCHUMI SUPERMARKET i.e., UCHUMI SUPERMARKET and CENTUM INVESTMENT go up and down completely randomly.
Pair Corralation between UCHUMI SUPERMARKET and CENTUM INVESTMENT
Assuming the 90 days trading horizon UCHUMI SUPERMARKET PLC is expected to generate 1.72 times more return on investment than CENTUM INVESTMENT. However, UCHUMI SUPERMARKET is 1.72 times more volatile than CENTUM INVESTMENT PANY. It trades about 0.05 of its potential returns per unit of risk. CENTUM INVESTMENT PANY is currently generating about 0.06 per unit of risk. If you would invest 20.00 in UCHUMI SUPERMARKET PLC on November 3, 2024 and sell it today you would earn a total of 8.00 from holding UCHUMI SUPERMARKET PLC or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UCHUMI SUPERMARKET PLC vs. CENTUM INVESTMENT PANY
Performance |
| Timeline |
| UCHUMI SUPERMARKET PLC |
| CENTUM INVESTMENT PANY |
UCHUMI SUPERMARKET and CENTUM INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UCHUMI SUPERMARKET and CENTUM INVESTMENT
The main advantage of trading using opposite UCHUMI SUPERMARKET and CENTUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UCHUMI SUPERMARKET position performs unexpectedly, CENTUM INVESTMENT 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 CENTUM INVESTMENT will offset losses from the drop in CENTUM INVESTMENT's long position.| UCHUMI SUPERMARKET vs. EQUITY GROUP HOLDINGS | UCHUMI SUPERMARKET vs. LONGHORN PUBLISHERS LTD | UCHUMI SUPERMARKET vs. ABSA BANK OF | UCHUMI SUPERMARKET vs. KENGEN PLC |
| CENTUM INVESTMENT vs. EQUITY GROUP HOLDINGS | CENTUM INVESTMENT vs. LONGHORN PUBLISHERS LTD | CENTUM INVESTMENT vs. ABSA BANK OF | CENTUM INVESTMENT vs. KENGEN PLC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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