Correlation Between Coronation Smaller and Coronation Global
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By analyzing existing cross correlation between Coronation Smaller Companies and Coronation Global Equity, you can compare the effects of market volatilities on Coronation Smaller and Coronation Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Smaller and Coronation Global.
Diversification Opportunities for Coronation Smaller and Coronation Global
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coronation and Coronation is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Smaller Companies and Coronation Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Global Equity 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Global Equity has no effect on the direction of Coronation Smaller i.e., Coronation Smaller and Coronation Global go up and down completely randomly.
Pair Corralation between Coronation Smaller and Coronation Global
Assuming the 90 days trading horizon Coronation Smaller is expected to generate 4.31 times less return on investment than Coronation Global. But when comparing it to its historical volatility, Coronation Smaller Companies is 4.16 times less risky than Coronation Global. It trades about 0.41 of its potential returns per unit of risk. Coronation Global Equity is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Coronation Global Equity on September 2, 2024 and sell it today you would earn a total of 31.00 from holding Coronation Global Equity or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Smaller Companies vs. Coronation Global Equity
Performance |
| Timeline |
| Coronation Smaller |
| Coronation Global Equity |
Coronation Smaller and Coronation Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Smaller and Coronation Global
The main advantage of trading using opposite Coronation Smaller and Coronation Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Smaller position performs unexpectedly, Coronation Global 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 Global will offset losses from the drop in Coronation Global'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 |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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