Correlation Between Absa Multi and NewFunds Low
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By analyzing existing cross correlation between Absa Multi Managed and NewFunds Low Volatility, you can compare the effects of market volatilities on Absa Multi and NewFunds Low 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 Absa Multi with a short position of NewFunds Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absa Multi and NewFunds Low.
Diversification Opportunities for Absa Multi and NewFunds Low
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Absa and NewFunds is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Absa Multi Managed and NewFunds Low Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFunds Low Volatility and Absa Multi 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 Absa Multi Managed are associated (or correlated) with NewFunds Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFunds Low Volatility has no effect on the direction of Absa Multi i.e., Absa Multi and NewFunds Low go up and down completely randomly.
Pair Corralation between Absa Multi and NewFunds Low
Assuming the 90 days trading horizon Absa Multi is expected to generate 1.66 times less return on investment than NewFunds Low. But when comparing it to its historical volatility, Absa Multi Managed is 1.5 times less risky than NewFunds Low. It trades about 0.23 of its potential returns per unit of risk. NewFunds Low Volatility is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 123,700 in NewFunds Low Volatility on September 12, 2024 and sell it today you would earn a total of 3,200 from holding NewFunds Low Volatility or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Absa Multi Managed vs. NewFunds Low Volatility
Performance |
| Timeline |
| Absa Multi Managed |
| NewFunds Low Volatility |
Absa Multi and NewFunds Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absa Multi and NewFunds Low
The main advantage of trading using opposite Absa Multi and NewFunds Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absa Multi position performs unexpectedly, NewFunds Low 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 NewFunds Low will offset losses from the drop in NewFunds Low's long position.| Absa Multi vs. NewFunds Low Volatility | Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Coronation Global Equity |
| NewFunds Low vs. NewFunds GOVI Exchange | NewFunds Low vs. NewFunds Shariah Top | NewFunds Low vs. NewFunds MAPPS Growth | NewFunds Low vs. NewFunds TRACI 3 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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