Correlation Between UCHUMI SUPERMARKET and NATION MEDIA
Specify exactly 2 symbols:
By analyzing existing cross correlation between UCHUMI SUPERMARKET PLC and NATION MEDIA GROUP, you can compare the effects of market volatilities on UCHUMI SUPERMARKET and NATION MEDIA 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 NATION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of UCHUMI SUPERMARKET and NATION MEDIA.
Diversification Opportunities for UCHUMI SUPERMARKET and NATION MEDIA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UCHUMI and NATION is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding UCHUMI SUPERMARKET PLC and NATION MEDIA GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATION MEDIA GROUP 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 NATION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATION MEDIA GROUP has no effect on the direction of UCHUMI SUPERMARKET i.e., UCHUMI SUPERMARKET and NATION MEDIA go up and down completely randomly.
Pair Corralation between UCHUMI SUPERMARKET and NATION MEDIA
Assuming the 90 days trading horizon UCHUMI SUPERMARKET PLC is expected to generate 1.74 times more return on investment than NATION MEDIA. However, UCHUMI SUPERMARKET is 1.74 times more volatile than NATION MEDIA GROUP. It trades about 0.01 of its potential returns per unit of risk. NATION MEDIA GROUP is currently generating about -0.01 per unit of risk. If you would invest 25.00 in UCHUMI SUPERMARKET PLC on September 2, 2024 and sell it today you would lose (4.00) from holding UCHUMI SUPERMARKET PLC or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UCHUMI SUPERMARKET PLC vs. NATION MEDIA GROUP
Performance |
| Timeline |
| UCHUMI SUPERMARKET PLC |
| NATION MEDIA GROUP |
UCHUMI SUPERMARKET and NATION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UCHUMI SUPERMARKET and NATION MEDIA
The main advantage of trading using opposite UCHUMI SUPERMARKET and NATION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UCHUMI SUPERMARKET position performs unexpectedly, NATION MEDIA 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 NATION MEDIA will offset losses from the drop in NATION MEDIA's long position.| UCHUMI SUPERMARKET vs. CIC INSURANCE GROUP | UCHUMI SUPERMARKET vs. HOMEBOYZ ENTERTAINMENT PLC | UCHUMI SUPERMARKET vs. KENYA RE INSURANCE PORATION | UCHUMI SUPERMARKET vs. CO OPERATIVE BANK OF |
| NATION MEDIA vs. CARBACID INVESTMENTS LTD | NATION MEDIA vs. KENYA RE INSURANCE PORATION | NATION MEDIA vs. CIC INSURANCE GROUP | NATION MEDIA vs. CO OPERATIVE BANK OF |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |