Correlation Between Absa Multi and Coronation Global
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By analyzing existing cross correlation between Absa Multi managed Absolute and Coronation Global Equity, you can compare the effects of market volatilities on Absa Multi and Coronation Global 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 Coronation Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absa Multi and Coronation Global.
Diversification Opportunities for Absa Multi and Coronation Global
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Absa and Coronation is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Absa Multi managed Absolute and Coronation Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Global Equity 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 Coronation Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Global Equity has no effect on the direction of Absa Multi i.e., Absa Multi and Coronation Global go up and down completely randomly.
Pair Corralation between Absa Multi and Coronation Global
Assuming the 90 days trading horizon Absa Multi managed Absolute is expected to under-perform the Coronation Global. But the fund apears to be less risky and, when comparing its historical volatility, Absa Multi managed Absolute is 1.3 times less risky than Coronation Global. The fund trades about -0.19 of its potential returns per unit of risk. The Coronation Global Equity is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Coronation Global Equity on October 22, 2024 and sell it today you would earn a total of 2.00 from holding Coronation Global Equity or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Absa Multi managed Absolute vs. Coronation Global Equity
Performance |
| Timeline |
| Absa Multi managed |
| Coronation Global Equity |
Absa Multi and Coronation Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absa Multi and Coronation Global
The main advantage of trading using opposite Absa Multi and Coronation Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absa Multi position performs unexpectedly, Coronation Global 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 Global will offset losses from the drop in Coronation Global's long position.| Absa Multi vs. Absa Prudential | Absa Multi vs. Absa Multi Managed | Absa Multi vs. Absa Multi Managed | Absa Multi vs. Absa Multi Managed |
| Coronation Global vs. Coronation Global Optimum | Coronation Global vs. Coronation Balanced Plus | Coronation Global vs. Coronation Industrial | Coronation Global 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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