Correlation Between AGRICULTURAL DEVELOPMENT and ACCESS BANK

Can any of the company-specific risk be diversified away by investing in both AGRICULTURAL DEVELOPMENT and ACCESS BANK 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 AGRICULTURAL DEVELOPMENT and ACCESS BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGRICULTURAL DEVELOPMENT BANK and ACCESS BANK GHANA, you can compare the effects of market volatilities on AGRICULTURAL DEVELOPMENT and ACCESS BANK 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 AGRICULTURAL DEVELOPMENT with a short position of ACCESS BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTURAL DEVELOPMENT and ACCESS BANK.

Diversification Opportunities for AGRICULTURAL DEVELOPMENT and ACCESS BANK

0.0

Correlation Coefficient

AGRICULTURAL DEVELOPMENT  ACCESS BANK

Pay attention - limited upside

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

Pair Corralation between AGRICULTURAL DEVELOPMENT and ACCESS BANK

If you would invest  506.00  in AGRICULTURAL DEVELOPMENT BANK on September 12, 2024 and sell it today you would earn a total of  0.00  from holding AGRICULTURAL DEVELOPMENT BANK or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AGRICULTURAL DEVELOPMENT BANK  vs.  ACCESS BANK GHANA

AGRICULTURAL DEVELOPMENT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGRICULTURAL DEVELOPMENT BANK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AGRICULTURAL DEVELOPMENT is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

ACCESS BANK GHANA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ACCESS BANK GHANA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, ACCESS BANK is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AGRICULTURAL DEVELOPMENT and ACCESS BANK

The main advantage of trading using opposite AGRICULTURAL DEVELOPMENT and ACCESS BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTURAL DEVELOPMENT position performs unexpectedly, ACCESS BANK 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 ACCESS BANK will offset losses from the drop in ACCESS BANK's long position.

The idea behind AGRICULTURAL DEVELOPMENT BANK and ACCESS BANK GHANA 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.