Correlation Between AIRTEL AFRICA and ALUMINIUM EXTRUSION
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By analyzing existing cross correlation between AIRTEL AFRICA PLC and ALUMINIUM EXTRUSION IND, you can compare the effects of market volatilities on AIRTEL AFRICA and ALUMINIUM EXTRUSION 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 AIRTEL AFRICA with a short position of ALUMINIUM EXTRUSION. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRTEL AFRICA and ALUMINIUM EXTRUSION.
Diversification Opportunities for AIRTEL AFRICA and ALUMINIUM EXTRUSION
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AIRTEL and ALUMINIUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AIRTEL AFRICA PLC and ALUMINIUM EXTRUSION IND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALUMINIUM EXTRUSION IND and AIRTEL AFRICA 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 AIRTEL AFRICA PLC are associated (or correlated) with ALUMINIUM EXTRUSION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALUMINIUM EXTRUSION IND has no effect on the direction of AIRTEL AFRICA i.e., AIRTEL AFRICA and ALUMINIUM EXTRUSION go up and down completely randomly.
Pair Corralation between AIRTEL AFRICA and ALUMINIUM EXTRUSION
Assuming the 90 days trading horizon AIRTEL AFRICA PLC is expected to generate 2.76 times more return on investment than ALUMINIUM EXTRUSION. However, AIRTEL AFRICA is 2.76 times more volatile than ALUMINIUM EXTRUSION IND. It trades about 0.1 of its potential returns per unit of risk. ALUMINIUM EXTRUSION IND is currently generating about 0.05 per unit of risk. If you would invest 127,000 in AIRTEL AFRICA PLC on June 8, 2025 and sell it today you would earn a total of 104,050 from holding AIRTEL AFRICA PLC or generate 81.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.3% |
| Values | Daily Returns |
AIRTEL AFRICA PLC vs. ALUMINIUM EXTRUSION IND
Performance |
| Timeline |
| AIRTEL AFRICA PLC |
| ALUMINIUM EXTRUSION IND |
AIRTEL AFRICA and ALUMINIUM EXTRUSION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRTEL AFRICA and ALUMINIUM EXTRUSION
The main advantage of trading using opposite AIRTEL AFRICA and ALUMINIUM EXTRUSION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRTEL AFRICA position performs unexpectedly, ALUMINIUM EXTRUSION 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 ALUMINIUM EXTRUSION will offset losses from the drop in ALUMINIUM EXTRUSION's long position.| AIRTEL AFRICA vs. GUINEA INSURANCE PLC | AIRTEL AFRICA vs. ALUMINIUM EXTRUSION IND | AIRTEL AFRICA vs. VITAFOAM NIGERIA PLC | AIRTEL AFRICA vs. JAPAUL OIL MARITIME |
| ALUMINIUM EXTRUSION vs. GUINEA INSURANCE PLC | ALUMINIUM EXTRUSION vs. VITAFOAM NIGERIA PLC | ALUMINIUM EXTRUSION vs. JAPAUL OIL MARITIME | ALUMINIUM EXTRUSION vs. SECURE ELECTRONIC TECHNOLOGY |
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