Correlation Between GHANA MERCIAL and DANNEX AYRTON

Can any of the company-specific risk be diversified away by investing in both GHANA MERCIAL and DANNEX AYRTON 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 GHANA MERCIAL and DANNEX AYRTON into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for GHANA MERCIAL and DANNEX AYRTON

0.0

Correlation Coefficient

GHANA MERCIAL  DANNEX AYRTON

Pay attention - limited upside

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

Pair Corralation between GHANA MERCIAL and DANNEX AYRTON

If you would invest  592.00  in GHANA MERCIAL BANK on September 12, 2024 and sell it today you would earn a total of  38.00  from holding GHANA MERCIAL BANK or generate 6.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

GHANA MERCIAL BANK  vs.  DANNEX AYRTON STARWIN

GHANA MERCIAL BANK

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GHANA MERCIAL BANK are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, GHANA MERCIAL is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

DANNEX AYRTON STARWIN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DANNEX AYRTON STARWIN has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, DANNEX AYRTON is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with GHANA MERCIAL and DANNEX AYRTON

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

The idea behind GHANA MERCIAL BANK and DANNEX AYRTON STARWIN 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.