Correlation Between Coronation Smaller and Coronation Balanced
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By analyzing existing cross correlation between Coronation Smaller Companies and Coronation Balanced Plus, you can compare the effects of market volatilities on Coronation Smaller and Coronation Balanced 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 Coronation Smaller with a short position of Coronation Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Smaller and Coronation Balanced.
Diversification Opportunities for Coronation Smaller and Coronation Balanced
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coronation and Coronation is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Smaller Companies and Coronation Balanced Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Balanced Plus and Coronation Smaller 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 Coronation Smaller Companies are associated (or correlated) with Coronation Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Balanced Plus has no effect on the direction of Coronation Smaller i.e., Coronation Smaller and Coronation Balanced go up and down completely randomly.
Pair Corralation between Coronation Smaller and Coronation Balanced
Assuming the 90 days trading horizon Coronation Smaller Companies is expected to generate 1.38 times more return on investment than Coronation Balanced. However, Coronation Smaller is 1.38 times more volatile than Coronation Balanced Plus. It trades about 0.19 of its potential returns per unit of risk. Coronation Balanced Plus is currently generating about 0.13 per unit of risk. If you would invest 10,391 in Coronation Smaller Companies on September 4, 2024 and sell it today you would earn a total of 3,509 from holding Coronation Smaller Companies or generate 33.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.18% |
| Values | Daily Returns |
Coronation Smaller Companies vs. Coronation Balanced Plus
Performance |
| Timeline |
| Coronation Smaller |
| Coronation Balanced Plus |
Coronation Smaller and Coronation Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Smaller and Coronation Balanced
The main advantage of trading using opposite Coronation Smaller and Coronation Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Smaller position performs unexpectedly, Coronation Balanced 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 Coronation Balanced will offset losses from the drop in Coronation Balanced's long position.| Coronation Smaller vs. Coronation Global Optimum | Coronation Smaller vs. Coronation Balanced Plus | Coronation Smaller vs. Coronation Industrial | Coronation Smaller vs. Coronation Capital Plus |
| Coronation Balanced vs. Coronation Global Optimum | Coronation Balanced vs. Coronation Balanced Plus | Coronation Balanced vs. Coronation Industrial | Coronation Balanced vs. Coronation Capital Plus |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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