Correlation Between Coronation Global and Absa Multi
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By analyzing existing cross correlation between Coronation Global Equity and Absa Multi Managed, you can compare the effects of market volatilities on Coronation Global 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 Coronation Global with a short position of Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and Absa Multi.
Diversification Opportunities for Coronation Global and Absa Multi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coronation and Absa is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Equity 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 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 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 Coronation Global i.e., Coronation Global and Absa Multi go up and down completely randomly.
Pair Corralation between Coronation Global and Absa Multi
Assuming the 90 days trading horizon Coronation Global Equity is expected to generate 2.52 times more return on investment than Absa Multi. However, Coronation Global is 2.52 times more volatile than Absa Multi Managed. It trades about 0.09 of its potential returns per unit of risk. Absa Multi Managed is currently generating about 0.1 per unit of risk. If you would invest 168.00 in Coronation Global Equity on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Coronation Global Equity or generate 58.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Coronation Global Equity vs. Absa Multi Managed
Performance |
| Timeline |
| Coronation Global Equity |
| Absa Multi Managed |
Coronation Global and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Global and Absa Multi
The main advantage of trading using opposite Coronation Global and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global 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.| Coronation Global vs. NewFunds Low Volatility | Coronation Global vs. Sasol Ltd Bee | Coronation Global vs. Centaur Bci Balanced | Coronation Global vs. AfricaRhodium ETF |
| Absa Multi vs. NewFunds Low Volatility | Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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