Correlation Between Allan Gray and Denker SCI
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By analyzing existing cross correlation between Allan Gray Equity and Denker SCI Balanced, you can compare the effects of market volatilities on Allan Gray and Denker SCI 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 Allan Gray with a short position of Denker SCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allan Gray and Denker SCI.
Diversification Opportunities for Allan Gray and Denker SCI
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allan and Denker is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Allan Gray Equity and Denker SCI Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denker SCI Balanced and Allan Gray 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 Allan Gray Equity are associated (or correlated) with Denker SCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denker SCI Balanced has no effect on the direction of Allan Gray i.e., Allan Gray and Denker SCI go up and down completely randomly.
Pair Corralation between Allan Gray and Denker SCI
Assuming the 90 days trading horizon Allan Gray is expected to generate 1.85 times less return on investment than Denker SCI. In addition to that, Allan Gray is 1.63 times more volatile than Denker SCI Balanced. It trades about 0.04 of its total potential returns per unit of risk. Denker SCI Balanced is currently generating about 0.13 per unit of volatility. If you would invest 1,497 in Denker SCI Balanced on September 3, 2024 and sell it today you would earn a total of 99.00 from holding Denker SCI Balanced or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Allan Gray Equity vs. Denker SCI Balanced
Performance |
| Timeline |
| Allan Gray Equity |
| Denker SCI Balanced |
Allan Gray and Denker SCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allan Gray and Denker SCI
The main advantage of trading using opposite Allan Gray and Denker SCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allan Gray position performs unexpectedly, Denker SCI 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 Denker SCI will offset losses from the drop in Denker SCI's long position.| Allan Gray vs. 4d Bci Moderate | Allan Gray vs. Coronation Global Optimum | Allan Gray vs. Discovery Aggressive Dynamic | Allan Gray vs. Bci Best Blend |
| Denker SCI vs. Sasol Ltd Bee | Denker SCI vs. Centaur Bci Balanced | Denker SCI vs. Sabvest Capital | Denker SCI vs. Growthpoint Properties |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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