Correlation Between Allan Gray and CoreShares TotalWldStock
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By analyzing existing cross correlation between Allan Gray Equity and CoreShares TotalWldStock ETF, you can compare the effects of market volatilities on Allan Gray and CoreShares TotalWldStock 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 CoreShares TotalWldStock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allan Gray and CoreShares TotalWldStock.
Diversification Opportunities for Allan Gray and CoreShares TotalWldStock
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allan and CoreShares is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Allan Gray Equity and CoreShares TotalWldStock ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreShares TotalWldStock 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 CoreShares TotalWldStock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreShares TotalWldStock has no effect on the direction of Allan Gray i.e., Allan Gray and CoreShares TotalWldStock go up and down completely randomly.
Pair Corralation between Allan Gray and CoreShares TotalWldStock
Assuming the 90 days trading horizon Allan Gray Equity is expected to under-perform the CoreShares TotalWldStock. But the fund apears to be less risky and, when comparing its historical volatility, Allan Gray Equity is 1.3 times less risky than CoreShares TotalWldStock. The fund trades about -0.07 of its potential returns per unit of risk. The CoreShares TotalWldStock ETF is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 147,900 in CoreShares TotalWldStock ETF on September 3, 2024 and sell it today you would earn a total of 9,100 from holding CoreShares TotalWldStock ETF or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allan Gray Equity vs. CoreShares TotalWldStock ETF
Performance |
| Timeline |
| Allan Gray Equity |
| CoreShares TotalWldStock |
Allan Gray and CoreShares TotalWldStock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allan Gray and CoreShares TotalWldStock
The main advantage of trading using opposite Allan Gray and CoreShares TotalWldStock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allan Gray position performs unexpectedly, CoreShares TotalWldStock 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 CoreShares TotalWldStock will offset losses from the drop in CoreShares TotalWldStock'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 |
| CoreShares TotalWldStock vs. Libstar Holdings | CoreShares TotalWldStock vs. City Lodge Hotels | CoreShares TotalWldStock vs. African Media Entertainment | CoreShares TotalWldStock vs. Europa Metals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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