Correlation Between Coronation Capital and Coronation Smaller
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By analyzing existing cross correlation between Coronation Capital Plus and Coronation Smaller Companies, you can compare the effects of market volatilities on Coronation Capital and Coronation Smaller 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 Capital with a short position of Coronation Smaller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Capital and Coronation Smaller.
Diversification Opportunities for Coronation Capital and Coronation Smaller
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coronation and Coronation is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Capital Plus and Coronation Smaller Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Smaller and Coronation Capital 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 Capital Plus are associated (or correlated) with Coronation Smaller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Smaller has no effect on the direction of Coronation Capital i.e., Coronation Capital and Coronation Smaller go up and down completely randomly.
Pair Corralation between Coronation Capital and Coronation Smaller
Assuming the 90 days trading horizon Coronation Capital Plus is expected to generate 1.29 times more return on investment than Coronation Smaller. However, Coronation Capital is 1.29 times more volatile than Coronation Smaller Companies. It trades about 0.35 of its potential returns per unit of risk. Coronation Smaller Companies is currently generating about 0.41 per unit of risk. If you would invest 5,518 in Coronation Capital Plus on September 2, 2024 and sell it today you would earn a total of 180.00 from holding Coronation Capital Plus or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Capital Plus vs. Coronation Smaller Companies
Performance |
| Timeline |
| Coronation Capital Plus |
| Coronation Smaller |
Coronation Capital and Coronation Smaller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Capital and Coronation Smaller
The main advantage of trading using opposite Coronation Capital and Coronation Smaller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Capital position performs unexpectedly, Coronation Smaller 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 Smaller will offset losses from the drop in Coronation Smaller's long position.| Coronation Capital vs. Coronation Global Optimum | Coronation Capital vs. Coronation Balanced Plus | Coronation Capital vs. Coronation Industrial | Coronation Capital vs. Coronation Global Equity |
| Coronation Smaller vs. Coronation Global Optimum | Coronation Smaller vs. Coronation Balanced Plus | Coronation Smaller vs. Coronation Industrial | Coronation Smaller 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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