Correlation Between Centaur Bci and Coronation Smaller
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By analyzing existing cross correlation between Centaur Bci Balanced and Coronation Smaller Companies, you can compare the effects of market volatilities on Centaur Bci 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 Centaur Bci with a short position of Coronation Smaller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Bci and Coronation Smaller.
Diversification Opportunities for Centaur Bci and Coronation Smaller
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Centaur and Coronation is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Bci Balanced and Coronation Smaller Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Smaller and Centaur Bci 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 Centaur Bci Balanced 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 Centaur Bci i.e., Centaur Bci and Coronation Smaller go up and down completely randomly.
Pair Corralation between Centaur Bci and Coronation Smaller
Assuming the 90 days trading horizon Centaur Bci is expected to generate 1.42 times less return on investment than Coronation Smaller. But when comparing it to its historical volatility, Centaur Bci Balanced is 1.21 times less risky than Coronation Smaller. It trades about 0.09 of its potential returns per unit of risk. Coronation Smaller Companies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,779 in Coronation Smaller Companies on September 2, 2024 and sell it today you would earn a total of 4,057 from holding Coronation Smaller Companies or generate 41.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.59% |
| Values | Daily Returns |
Centaur Bci Balanced vs. Coronation Smaller Companies
Performance |
| Timeline |
| Centaur Bci Balanced |
| Coronation Smaller |
Centaur Bci and Coronation Smaller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Bci and Coronation Smaller
The main advantage of trading using opposite Centaur Bci and Coronation Smaller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Bci 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.| Centaur Bci vs. 4d Bci Moderate | Centaur Bci vs. Coronation Global Optimum | Centaur Bci vs. Absa Multi managed Absolute | Centaur Bci vs. Coronation Balanced Plus |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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