Correlation Between Absa Multi and Centaur Bci
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By analyzing existing cross correlation between Absa Multi managed Absolute and Centaur Bci Balanced, you can compare the effects of market volatilities on Absa Multi 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 Absa Multi with a short position of Centaur Bci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absa Multi and Centaur Bci.
Diversification Opportunities for Absa Multi and Centaur Bci
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Absa and Centaur is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Absa Multi managed Absolute 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 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 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 Absa Multi i.e., Absa Multi and Centaur Bci go up and down completely randomly.
Pair Corralation between Absa Multi and Centaur Bci
Assuming the 90 days trading horizon Absa Multi is expected to generate 1.17 times less return on investment than Centaur Bci. In addition to that, Absa Multi is 1.03 times more volatile than Centaur Bci Balanced. It trades about 0.17 of its total potential returns per unit of risk. Centaur Bci Balanced is currently generating about 0.21 per unit of volatility. If you would invest 237.00 in Centaur Bci Balanced on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Centaur Bci Balanced or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Absa Multi managed Absolute vs. Centaur Bci Balanced
Performance |
| Timeline |
| Absa Multi managed |
| Centaur Bci Balanced |
Absa Multi and Centaur Bci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absa Multi and Centaur Bci
The main advantage of trading using opposite Absa Multi and Centaur Bci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absa Multi 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.| Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Sabvest Capital | Absa Multi vs. Growthpoint Properties | Absa Multi vs. AfricaRhodium ETF |
| 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 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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