Correlation Between Coronation Capital and Coronation Financial
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By analyzing existing cross correlation between Coronation Capital Plus and Coronation Financial, you can compare the effects of market volatilities on Coronation Capital and Coronation Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Capital and Coronation Financial.
Diversification Opportunities for Coronation Capital and Coronation Financial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coronation and Coronation is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Capital Plus and Coronation Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Financial 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Financial has no effect on the direction of Coronation Capital i.e., Coronation Capital and Coronation Financial go up and down completely randomly.
Pair Corralation between Coronation Capital and Coronation Financial
Assuming the 90 days trading horizon Coronation Capital Plus is expected to generate 0.73 times more return on investment than Coronation Financial. However, Coronation Capital Plus is 1.37 times less risky than Coronation Financial. It trades about 0.35 of its potential returns per unit of risk. Coronation Financial is currently generating about -0.03 per unit of risk. If you would invest 5,523 in Coronation Capital Plus on September 3, 2024 and sell it today you would earn a total of 175.00 from holding Coronation Capital Plus or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Capital Plus vs. Coronation Financial
Performance |
| Timeline |
| Coronation Capital Plus |
| Coronation Financial |
Coronation Capital and Coronation Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Capital and Coronation Financial
The main advantage of trading using opposite Coronation Capital and Coronation Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Capital position performs unexpectedly, Coronation Financial 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 Financial will offset losses from the drop in Coronation Financial's long position.| Coronation Capital vs. Cinnabar Sci Balanced | Coronation Capital vs. Coronation Global Optimum | Coronation Capital vs. Counterpoint Sci Managed | Coronation Capital vs. Bci Best Blend |
| Coronation Financial vs. Coronation Balanced Plus | Coronation Financial vs. Coronation Industrial | Coronation Financial vs. Coronation Capital Plus | Coronation Financial vs. Coronation Global Equity |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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