Correlation Between Coronation Global and Allan Gray
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By analyzing existing cross correlation between Coronation Global Equity and Allan Gray orbis Global, you can compare the effects of market volatilities on Coronation Global and Allan Gray 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 Coronation Global with a short position of Allan Gray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and Allan Gray.
Diversification Opportunities for Coronation Global and Allan Gray
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coronation and Allan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Equity and Allan Gray orbis Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allan Gray orbis and Coronation Global 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 Coronation Global Equity are associated (or correlated) with Allan Gray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allan Gray orbis has no effect on the direction of Coronation Global i.e., Coronation Global and Allan Gray go up and down completely randomly.
Pair Corralation between Coronation Global and Allan Gray
Assuming the 90 days trading horizon Coronation Global Equity is expected to generate 1.35 times more return on investment than Allan Gray. However, Coronation Global is 1.35 times more volatile than Allan Gray orbis Global. It trades about 0.07 of its potential returns per unit of risk. Allan Gray orbis Global is currently generating about 0.07 per unit of risk. If you would invest 212.00 in Coronation Global Equity on September 12, 2024 and sell it today you would earn a total of 55.00 from holding Coronation Global Equity or generate 25.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.39% |
| Values | Daily Returns |
Coronation Global Equity vs. Allan Gray orbis Global
Performance |
| Timeline |
| Coronation Global Equity |
| Allan Gray orbis |
Coronation Global and Allan Gray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Global and Allan Gray
The main advantage of trading using opposite Coronation Global and Allan Gray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global position performs unexpectedly, Allan Gray 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 Allan Gray will offset losses from the drop in Allan Gray's long position.| Coronation Global vs. NewFunds Low Volatility | Coronation Global vs. Sasol Ltd Bee | Coronation Global vs. Centaur Bci Balanced | Coronation Global vs. AfricaRhodium ETF |
| Allan Gray vs. NewFunds Low Volatility | Allan Gray vs. Sasol Ltd Bee | Allan Gray vs. Centaur Bci Balanced | Allan Gray vs. Coronation Global Equity |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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