Correlation Between AFROMEDIA PLC and FORTIS GLOBAL

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Can any of the company-specific risk be diversified away by investing in both AFROMEDIA PLC and FORTIS GLOBAL 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 AFROMEDIA PLC and FORTIS GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFROMEDIA PLC and FORTIS GLOBAL INSURANCE, you can compare the effects of market volatilities on AFROMEDIA PLC and FORTIS GLOBAL 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 AFROMEDIA PLC with a short position of FORTIS GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFROMEDIA PLC and FORTIS GLOBAL.

Diversification Opportunities for AFROMEDIA PLC and FORTIS GLOBAL

-1.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AFROMEDIA and FORTIS is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding AFROMEDIA PLC and FORTIS GLOBAL INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORTIS GLOBAL INSURANCE and AFROMEDIA PLC 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 AFROMEDIA PLC are associated (or correlated) with FORTIS GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORTIS GLOBAL INSURANCE has no effect on the direction of AFROMEDIA PLC i.e., AFROMEDIA PLC and FORTIS GLOBAL go up and down completely randomly.

Pair Corralation between AFROMEDIA PLC and FORTIS GLOBAL

If you would invest  20.00  in FORTIS GLOBAL INSURANCE on August 30, 2025 and sell it today you would earn a total of  0.00  from holding FORTIS GLOBAL INSURANCE or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

AFROMEDIA PLC  vs.  FORTIS GLOBAL INSURANCE

 Performance 
       Timeline  
AFROMEDIA PLC 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days AFROMEDIA PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, AFROMEDIA PLC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
FORTIS GLOBAL INSURANCE 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days FORTIS GLOBAL INSURANCE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, FORTIS GLOBAL is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

AFROMEDIA PLC and FORTIS GLOBAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AFROMEDIA PLC and FORTIS GLOBAL

The main advantage of trading using opposite AFROMEDIA PLC and FORTIS GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFROMEDIA PLC position performs unexpectedly, FORTIS GLOBAL 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 FORTIS GLOBAL will offset losses from the drop in FORTIS GLOBAL's long position.
The idea behind AFROMEDIA PLC and FORTIS GLOBAL INSURANCE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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