Correlation Between AFROMEDIA PLC and SECURE ELECTRONIC

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

Diversification Opportunities for AFROMEDIA PLC and SECURE ELECTRONIC

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AFROMEDIA and SECURE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFROMEDIA PLC and SECURE ELECTRONIC TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURE ELECTRONIC 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 SECURE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURE ELECTRONIC has no effect on the direction of AFROMEDIA PLC i.e., AFROMEDIA PLC and SECURE ELECTRONIC go up and down completely randomly.

Pair Corralation between AFROMEDIA PLC and SECURE ELECTRONIC

If you would invest  24.00  in AFROMEDIA PLC on September 25, 2025 and sell it today you would earn a total of  0.00  from holding AFROMEDIA PLC or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AFROMEDIA PLC  vs.  SECURE ELECTRONIC TECHNOLOGY

 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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.
SECURE ELECTRONIC 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days SECURE ELECTRONIC TECHNOLOGY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

AFROMEDIA PLC and SECURE ELECTRONIC Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AFROMEDIA PLC and SECURE ELECTRONIC

The main advantage of trading using opposite AFROMEDIA PLC and SECURE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFROMEDIA PLC position performs unexpectedly, SECURE ELECTRONIC 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 SECURE ELECTRONIC will offset losses from the drop in SECURE ELECTRONIC's long position.
The idea behind AFROMEDIA PLC and SECURE ELECTRONIC TECHNOLOGY 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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