Correlation Between Allan Gray and Sabvest Capital
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By analyzing existing cross correlation between Allan Gray Equity and Sabvest Capital, you can compare the effects of market volatilities on Allan Gray and Sabvest Capital 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 Sabvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allan Gray and Sabvest Capital.
Diversification Opportunities for Allan Gray and Sabvest Capital
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allan and Sabvest is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Allan Gray Equity and Sabvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabvest Capital 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 Sabvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabvest Capital has no effect on the direction of Allan Gray i.e., Allan Gray and Sabvest Capital go up and down completely randomly.
Pair Corralation between Allan Gray and Sabvest Capital
Assuming the 90 days trading horizon Allan Gray Equity is expected to under-perform the Sabvest Capital. But the fund apears to be less risky and, when comparing its historical volatility, Allan Gray Equity is 3.65 times less risky than Sabvest Capital. The fund trades about -0.07 of its potential returns per unit of risk. The Sabvest Capital is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 835,100 in Sabvest Capital on September 3, 2024 and sell it today you would earn a total of 109,900 from holding Sabvest Capital or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allan Gray Equity vs. Sabvest Capital
Performance |
| Timeline |
| Allan Gray Equity |
| Sabvest Capital |
Allan Gray and Sabvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allan Gray and Sabvest Capital
The main advantage of trading using opposite Allan Gray and Sabvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allan Gray position performs unexpectedly, Sabvest Capital 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 Sabvest Capital will offset losses from the drop in Sabvest Capital'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 |
| Sabvest Capital vs. Remgro | Sabvest Capital vs. Zeder Investments | Sabvest Capital vs. Universal Partners | Sabvest Capital vs. Astoria Investments |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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