Correlation Between Coronation Global and Centaur Bci
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By analyzing existing cross correlation between Coronation Global Optimum and Centaur Bci Balanced, you can compare the effects of market volatilities on Coronation Global and Centaur Bci 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 Centaur Bci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and Centaur Bci.
Diversification Opportunities for Coronation Global and Centaur Bci
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coronation and Centaur is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Optimum and Centaur Bci Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Bci Balanced 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 Centaur Bci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Bci Balanced has no effect on the direction of Coronation Global i.e., Coronation Global and Centaur Bci go up and down completely randomly.
Pair Corralation between Coronation Global and Centaur Bci
Assuming the 90 days trading horizon Coronation Global Optimum is expected to generate 1.95 times more return on investment than Centaur Bci. However, Coronation Global is 1.95 times more volatile than Centaur Bci Balanced. It trades about 0.11 of its potential returns per unit of risk. Centaur Bci Balanced is currently generating about 0.12 per unit of risk. If you would invest 16,649 in Coronation Global Optimum on August 28, 2024 and sell it today you would earn a total of 1,058 from holding Coronation Global Optimum or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.83% |
| Values | Daily Returns |
Coronation Global Optimum vs. Centaur Bci Balanced
Performance |
| Timeline |
| Coronation Global Optimum |
| Centaur Bci Balanced |
Coronation Global and Centaur Bci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Global and Centaur Bci
The main advantage of trading using opposite Coronation Global and Centaur Bci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global position performs unexpectedly, Centaur Bci 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 Centaur Bci will offset losses from the drop in Centaur Bci's long position.| Coronation Global vs. Centaur Bci Balanced | Coronation Global vs. Sabvest Capital | Coronation Global vs. Growthpoint Properties | Coronation Global vs. AfricaRhodium ETF |
| Centaur Bci vs. Sabvest Capital | Centaur Bci vs. Growthpoint Properties | Centaur Bci vs. AfricaRhodium ETF | Centaur Bci vs. CoreShares Preference Share |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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