Correlation Between Coronation Global and Allan Gray
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By analyzing existing cross correlation between Coronation Global Optimum and Allan Gray Equity, you can compare the effects of market volatilities on Coronation Global and Allan Gray 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 Global with a short position of Allan Gray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and Allan Gray.
Diversification Opportunities for Coronation Global and Allan Gray
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coronation and Allan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Optimum and Allan Gray Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allan Gray Equity and Coronation Global 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 Global Optimum are associated (or correlated) with Allan Gray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allan Gray Equity has no effect on the direction of Coronation Global i.e., Coronation Global and Allan Gray go up and down completely randomly.
Pair Corralation between Coronation Global and Allan Gray
Assuming the 90 days trading horizon Coronation Global Optimum is expected to generate 1.46 times more return on investment than Allan Gray. However, Coronation Global is 1.46 times more volatile than Allan Gray Equity. It trades about 0.19 of its potential returns per unit of risk. Allan Gray Equity is currently generating about -0.07 per unit of risk. If you would invest 17,168 in Coronation Global Optimum on September 3, 2024 and sell it today you would earn a total of 777.00 from holding Coronation Global Optimum or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Global Optimum vs. Allan Gray Equity
Performance |
| Timeline |
| Coronation Global Optimum |
| Allan Gray Equity |
Coronation Global and Allan Gray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Global and Allan Gray
The main advantage of trading using opposite Coronation Global and Allan Gray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global position performs unexpectedly, Allan Gray 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 Allan Gray will offset losses from the drop in Allan Gray's long position.| Coronation Global vs. 4d Bci Moderate | Coronation Global vs. Discovery Aggressive Dynamic | Coronation Global vs. Bci Best Blend | Coronation Global vs. Denker SCI Balanced |
| Allan Gray vs. 4d Bci Moderate | Allan Gray vs. Coronation Global Optimum | Allan Gray vs. Discovery Aggressive Dynamic | Allan Gray vs. Bci Best Blend |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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