Correlation Between YETU MICROFINANCE and CRDB BANK
Can any of the company-specific risk be diversified away by investing in both YETU MICROFINANCE and CRDB BANK at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining YETU MICROFINANCE and CRDB BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YETU MICROFINANCE PLC and CRDB BANK LTD, you can compare the effects of market volatilities on YETU MICROFINANCE and CRDB BANK 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 YETU MICROFINANCE with a short position of CRDB BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of YETU MICROFINANCE and CRDB BANK.
Diversification Opportunities for YETU MICROFINANCE and CRDB BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YETU and CRDB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YETU MICROFINANCE PLC and CRDB BANK LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRDB BANK LTD and YETU MICROFINANCE 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 YETU MICROFINANCE PLC are associated (or correlated) with CRDB BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRDB BANK LTD has no effect on the direction of YETU MICROFINANCE i.e., YETU MICROFINANCE and CRDB BANK go up and down completely randomly.
Pair Corralation between YETU MICROFINANCE and CRDB BANK
If you would invest 67,000 in CRDB BANK LTD on November 4, 2024 and sell it today you would earn a total of 2,000 from holding CRDB BANK LTD or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YETU MICROFINANCE PLC vs. CRDB BANK LTD
Performance |
| Timeline |
| YETU MICROFINANCE PLC |
| CRDB BANK LTD |
YETU MICROFINANCE and CRDB BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YETU MICROFINANCE and CRDB BANK
The main advantage of trading using opposite YETU MICROFINANCE and CRDB BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YETU MICROFINANCE position performs unexpectedly, CRDB BANK 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 CRDB BANK will offset losses from the drop in CRDB BANK's long position.| YETU MICROFINANCE vs. CRDB BANK LTD | YETU MICROFINANCE vs. NATION MEDIA GROUP | YETU MICROFINANCE vs. MWALIMU MERCIAL BANK | YETU MICROFINANCE vs. AFRIPRISE INVESTMENT PLC |
| CRDB BANK vs. YETU MICROFINANCE PLC | CRDB BANK vs. NATION MEDIA GROUP | CRDB BANK vs. MWALIMU MERCIAL BANK | CRDB BANK vs. AFRIPRISE INVESTMENT 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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