Correlation Between UCHUMI SUPERMARKET and TOTALENERGIES MARKETING
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By analyzing existing cross correlation between UCHUMI SUPERMARKET PLC and TOTALENERGIES MARKETING KENYA, you can compare the effects of market volatilities on UCHUMI SUPERMARKET and TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of UCHUMI SUPERMARKET and TOTALENERGIES MARKETING.
Diversification Opportunities for UCHUMI SUPERMARKET and TOTALENERGIES MARKETING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UCHUMI and TOTALENERGIES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UCHUMI SUPERMARKET PLC and TOTALENERGIES MARKETING KENYA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTALENERGIES MARKETING has no effect on the direction of UCHUMI SUPERMARKET i.e., UCHUMI SUPERMARKET and TOTALENERGIES MARKETING go up and down completely randomly.
Pair Corralation between UCHUMI SUPERMARKET and TOTALENERGIES MARKETING
Assuming the 90 days trading horizon UCHUMI SUPERMARKET PLC is expected to generate 1.23 times more return on investment than TOTALENERGIES MARKETING. However, UCHUMI SUPERMARKET is 1.23 times more volatile than TOTALENERGIES MARKETING KENYA. It trades about 0.01 of its potential returns per unit of risk. TOTALENERGIES MARKETING KENYA is currently generating about 0.01 per unit of risk. If you would invest 25.00 in UCHUMI SUPERMARKET PLC on September 3, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UCHUMI SUPERMARKET PLC vs. TOTALENERGIES MARKETING KENYA
Performance |
| Timeline |
| UCHUMI SUPERMARKET PLC |
| TOTALENERGIES MARKETING |
UCHUMI SUPERMARKET and TOTALENERGIES MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UCHUMI SUPERMARKET and TOTALENERGIES MARKETING
The main advantage of trading using opposite UCHUMI SUPERMARKET and TOTALENERGIES MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UCHUMI SUPERMARKET position performs unexpectedly, TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING will offset losses from the drop in TOTALENERGIES MARKETING's long position.| UCHUMI SUPERMARKET vs. TOTALENERGIES MARKETING KENYA | UCHUMI SUPERMARKET vs. CO OPERATIVE BANK OF | UCHUMI SUPERMARKET vs. STANDARD CHARTERED BANK | UCHUMI SUPERMARKET vs. CARBACID INVESTMENTS LTD |
| 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 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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