Correlation Between Absa Multi and Autus Prime
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By analyzing existing cross correlation between Absa Multi managed Absolute and Autus Prime Balanced, you can compare the effects of market volatilities on Absa Multi and Autus Prime 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 Autus Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absa Multi and Autus Prime.
Diversification Opportunities for Absa Multi and Autus Prime
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Absa and Autus is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Absa Multi managed Absolute and Autus Prime Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autus Prime Balanced 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 Absolute are associated (or correlated) with Autus Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autus Prime Balanced has no effect on the direction of Absa Multi i.e., Absa Multi and Autus Prime go up and down completely randomly.
Pair Corralation between Absa Multi and Autus Prime
Assuming the 90 days trading horizon Absa Multi is expected to generate 1.3 times less return on investment than Autus Prime. But when comparing it to its historical volatility, Absa Multi managed Absolute is 1.0 times less risky than Autus Prime. It trades about 0.09 of its potential returns per unit of risk. Autus Prime Balanced is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 376.00 in Autus Prime Balanced on September 12, 2024 and sell it today you would earn a total of 57.00 from holding Autus Prime Balanced or generate 15.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Absa Multi managed Absolute vs. Autus Prime Balanced
Performance |
| Timeline |
| Absa Multi managed |
| Autus Prime Balanced |
Absa Multi and Autus Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absa Multi and Autus Prime
The main advantage of trading using opposite Absa Multi and Autus Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absa Multi position performs unexpectedly, Autus Prime 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 Autus Prime will offset losses from the drop in Autus Prime'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 |
| Autus Prime vs. 4d Bci Moderate | Autus Prime vs. Coronation Global Optimum | Autus Prime vs. Absa Multi managed Absolute | Autus Prime vs. Coronation Balanced 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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