Correlation Between SFS REAL and CUSTODIAN INVESTMENT
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By analyzing existing cross correlation between SFS REAL ESTATE and CUSTODIAN INVESTMENT PLC, you can compare the effects of market volatilities on SFS REAL and CUSTODIAN INVESTMENT 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 SFS REAL with a short position of CUSTODIAN INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFS REAL and CUSTODIAN INVESTMENT.
Diversification Opportunities for SFS REAL and CUSTODIAN INVESTMENT
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SFS and CUSTODIAN is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SFS REAL ESTATE and CUSTODIAN INVESTMENT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUSTODIAN INVESTMENT PLC and SFS REAL 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 SFS REAL ESTATE are associated (or correlated) with CUSTODIAN INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUSTODIAN INVESTMENT PLC has no effect on the direction of SFS REAL i.e., SFS REAL and CUSTODIAN INVESTMENT go up and down completely randomly.
Pair Corralation between SFS REAL and CUSTODIAN INVESTMENT
Assuming the 90 days trading horizon SFS REAL is expected to generate 2.64 times less return on investment than CUSTODIAN INVESTMENT. But when comparing it to its historical volatility, SFS REAL ESTATE is 2.11 times less risky than CUSTODIAN INVESTMENT. It trades about 0.18 of its potential returns per unit of risk. CUSTODIAN INVESTMENT PLC is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,790 in CUSTODIAN INVESTMENT PLC on April 14, 2025 and sell it today you would earn a total of 1,110 from holding CUSTODIAN INVESTMENT PLC or generate 62.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SFS REAL ESTATE vs. CUSTODIAN INVESTMENT PLC
Performance |
| Timeline |
| SFS REAL ESTATE |
| CUSTODIAN INVESTMENT PLC |
SFS REAL and CUSTODIAN INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFS REAL and CUSTODIAN INVESTMENT
The main advantage of trading using opposite SFS REAL and CUSTODIAN INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFS REAL position performs unexpectedly, CUSTODIAN INVESTMENT 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 CUSTODIAN INVESTMENT will offset losses from the drop in CUSTODIAN INVESTMENT's long position.| SFS REAL vs. CUSTODIAN INVESTMENT PLC | SFS REAL vs. NEM INSURANCE PLC | SFS REAL vs. BUA FOODS PLC | SFS REAL vs. TOTALENERGIES MARKETING NIGERIA |
| CUSTODIAN INVESTMENT vs. MULTI TREX INTEGRATED FOODS | CUSTODIAN INVESTMENT vs. AIICO INSURANCE PLC | CUSTODIAN INVESTMENT vs. SOVEREIGN TRUST INSURANCE | CUSTODIAN INVESTMENT vs. NOTORE CHEMICAL IND |
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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