Correlation Between Coronation Global and Coronation Financial
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By analyzing existing cross correlation between Coronation Global Equity and Coronation Financial, you can compare the effects of market volatilities on Coronation Global and Coronation Financial 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 Coronation Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and Coronation Financial.
Diversification Opportunities for Coronation Global and Coronation Financial
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coronation and Coronation is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Equity and Coronation Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Financial 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 Coronation Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Financial has no effect on the direction of Coronation Global i.e., Coronation Global and Coronation Financial go up and down completely randomly.
Pair Corralation between Coronation Global and Coronation Financial
Assuming the 90 days trading horizon Coronation Global Equity is expected to generate 2.12 times more return on investment than Coronation Financial. However, Coronation Global is 2.12 times more volatile than Coronation Financial. It trades about 0.43 of its potential returns per unit of risk. Coronation Financial is currently generating about 0.06 per unit of risk. If you would invest 230.00 in Coronation Global Equity on September 2, 2024 and sell it today you would earn a total of 31.00 from holding Coronation Global Equity or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Global Equity vs. Coronation Financial
Performance |
| Timeline |
| Coronation Global Equity |
| Coronation Financial |
Coronation Global and Coronation Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Global and Coronation Financial
The main advantage of trading using opposite Coronation Global and Coronation Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global position performs unexpectedly, Coronation Financial 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 Financial will offset losses from the drop in Coronation Financial's long position.| Coronation Global vs. Sasol Ltd Bee | Coronation Global vs. Centaur Bci Balanced | Coronation Global vs. Sabvest Capital | Coronation Global vs. Growthpoint Properties |
| Coronation Financial vs. Sasol Ltd Bee | Coronation Financial vs. Centaur Bci Balanced | Coronation Financial vs. Sabvest Capital | Coronation Financial 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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