Correlation Between ZAMBEEF PRODUCTS and CEC AFRICA
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By analyzing existing cross correlation between ZAMBEEF PRODUCTS PLC and CEC AFRICA INVESTMENTS, you can compare the effects of market volatilities on ZAMBEEF PRODUCTS and CEC AFRICA 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 ZAMBEEF PRODUCTS with a short position of CEC AFRICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZAMBEEF PRODUCTS and CEC AFRICA.
Diversification Opportunities for ZAMBEEF PRODUCTS and CEC AFRICA
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZAMBEEF and CEC is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ZAMBEEF PRODUCTS PLC and CEC AFRICA INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEC AFRICA INVESTMENTS and ZAMBEEF PRODUCTS 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 ZAMBEEF PRODUCTS PLC are associated (or correlated) with CEC AFRICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEC AFRICA INVESTMENTS has no effect on the direction of ZAMBEEF PRODUCTS i.e., ZAMBEEF PRODUCTS and CEC AFRICA go up and down completely randomly.
Pair Corralation between ZAMBEEF PRODUCTS and CEC AFRICA
Assuming the 90 days trading horizon ZAMBEEF PRODUCTS PLC is expected to generate 0.49 times more return on investment than CEC AFRICA. However, ZAMBEEF PRODUCTS PLC is 2.05 times less risky than CEC AFRICA. It trades about -0.45 of its potential returns per unit of risk. CEC AFRICA INVESTMENTS is currently generating about -0.22 per unit of risk. If you would invest 213.00 in ZAMBEEF PRODUCTS PLC on October 24, 2024 and sell it today you would lose (15.00) from holding ZAMBEEF PRODUCTS PLC or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ZAMBEEF PRODUCTS PLC vs. CEC AFRICA INVESTMENTS
Performance |
| Timeline |
| ZAMBEEF PRODUCTS PLC |
| CEC AFRICA INVESTMENTS |
ZAMBEEF PRODUCTS and CEC AFRICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZAMBEEF PRODUCTS and CEC AFRICA
The main advantage of trading using opposite ZAMBEEF PRODUCTS and CEC AFRICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZAMBEEF PRODUCTS position performs unexpectedly, CEC AFRICA 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 CEC AFRICA will offset losses from the drop in CEC AFRICA's long position.| ZAMBEEF PRODUCTS vs. STANDARD CHARTERED BANK | ZAMBEEF PRODUCTS vs. METAL FABRICATORS OF | ZAMBEEF PRODUCTS vs. AECI MINING EXPLOSIVES | ZAMBEEF PRODUCTS vs. ZAMBIA SUGAR PLC |
| CEC AFRICA vs. STANDARD CHARTERED BANK | CEC AFRICA vs. METAL FABRICATORS OF | CEC AFRICA vs. AECI MINING EXPLOSIVES | CEC AFRICA vs. ZAMBIA SUGAR 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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