Correlation Between Centaur Bci and Afrimat
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By analyzing existing cross correlation between Centaur Bci Balanced and Afrimat, you can compare the effects of market volatilities on Centaur Bci and Afrimat 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 Afrimat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Bci and Afrimat.
Diversification Opportunities for Centaur Bci and Afrimat
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Centaur and Afrimat is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Bci Balanced and Afrimat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afrimat 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 Afrimat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afrimat has no effect on the direction of Centaur Bci i.e., Centaur Bci and Afrimat go up and down completely randomly.
Pair Corralation between Centaur Bci and Afrimat
Assuming the 90 days trading horizon Centaur Bci is expected to generate 1.27 times less return on investment than Afrimat. But when comparing it to its historical volatility, Centaur Bci Balanced is 3.01 times less risky than Afrimat. It trades about 0.13 of its potential returns per unit of risk. Afrimat is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 588,300 in Afrimat on September 12, 2024 and sell it today you would earn a total of 122,200 from holding Afrimat or generate 20.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.37% |
| Values | Daily Returns |
Centaur Bci Balanced vs. Afrimat
Performance |
| Timeline |
| Centaur Bci Balanced |
| Afrimat |
Centaur Bci and Afrimat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Bci and Afrimat
The main advantage of trading using opposite Centaur Bci and Afrimat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Bci position performs unexpectedly, Afrimat 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 Afrimat will offset losses from the drop in Afrimat's long position.| Centaur Bci vs. NewFunds Low Volatility | Centaur Bci vs. Sasol Ltd Bee | Centaur Bci vs. Coronation Global Equity | Centaur Bci vs. AfricaRhodium ETF |
| Afrimat vs. Sasol Ltd Bee | Afrimat vs. Centaur Bci Balanced | Afrimat vs. Sabvest Capital | Afrimat vs. Growthpoint Properties |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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