Correlation Between Absa Multi and Absa Multi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Absa Multi managed Absolute and Absa Multi Managed, you can compare the effects of market volatilities on Absa Multi and Absa Multi 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 Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absa Multi and Absa Multi.
Diversification Opportunities for Absa Multi and Absa Multi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Absa and Absa is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Absa Multi managed Absolute and Absa Multi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Multi Managed 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 Absa Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Multi Managed has no effect on the direction of Absa Multi i.e., Absa Multi and Absa Multi go up and down completely randomly.
Pair Corralation between Absa Multi and Absa Multi
Assuming the 90 days trading horizon Absa Multi is expected to generate 1.16 times less return on investment than Absa Multi. But when comparing it to its historical volatility, Absa Multi managed Absolute is 1.32 times less risky than Absa Multi. It trades about 0.29 of its potential returns per unit of risk. Absa Multi Managed is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 251.00 in Absa Multi Managed on September 5, 2024 and sell it today you would earn a total of 6.00 from holding Absa Multi Managed or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Absa Multi managed Absolute vs. Absa Multi Managed
Performance |
| Timeline |
| Absa Multi managed |
| Absa Multi Managed |
Absa Multi and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absa Multi and Absa Multi
The main advantage of trading using opposite Absa Multi and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absa Multi position performs unexpectedly, Absa Multi 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 Absa Multi will offset losses from the drop in Absa Multi's long position.| Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Sabvest Capital | Absa Multi vs. Growthpoint Properties |
| Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Sabvest Capital | Absa Multi 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |