Correlation Between MTN GHANA and DANNEX AYRTON

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

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

Diversification Opportunities for MTN GHANA and DANNEX AYRTON

0.0

Correlation Coefficient

MTN GHANA  DANNEX AYRTON

Pay attention - limited upside

The 3 months correlation between MTN and DANNEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MTN GHANA LTD 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 MTN GHANA 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 MTN GHANA LTD 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 MTN GHANA i.e., MTN GHANA and DANNEX AYRTON go up and down completely randomly.

Pair Corralation between MTN GHANA and DANNEX AYRTON

If you would invest  220.00  in MTN GHANA LTD on September 12, 2024 and sell it today you would earn a total of  17.00  from holding MTN GHANA LTD or generate 7.73% return on investment over 90 days.

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

MTN GHANA LTD  vs.  DANNEX AYRTON STARWIN

MTN GHANA LTD

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MTN GHANA LTD are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, MTN GHANA may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 MTN GHANA and DANNEX AYRTON

The main advantage of trading using opposite MTN GHANA and DANNEX AYRTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTN GHANA 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 MTN GHANA LTD 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.