Correlation Between Coronation Global and Ascendis Health
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By analyzing existing cross correlation between Coronation Global Equity and Ascendis Health, you can compare the effects of market volatilities on Coronation Global and Ascendis Health 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 Ascendis Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and Ascendis Health.
Diversification Opportunities for Coronation Global and Ascendis Health
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coronation and Ascendis is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Equity and Ascendis Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Health 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 Ascendis Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Health has no effect on the direction of Coronation Global i.e., Coronation Global and Ascendis Health go up and down completely randomly.
Pair Corralation between Coronation Global and Ascendis Health
Assuming the 90 days trading horizon Coronation Global Equity is expected to generate 0.46 times more return on investment than Ascendis Health. However, Coronation Global Equity is 2.2 times less risky than Ascendis Health. It trades about 0.45 of its potential returns per unit of risk. Ascendis Health is currently generating about 0.01 per unit of risk. If you would invest 231.00 in Coronation Global Equity on September 4, 2024 and sell it today you would earn a total of 33.00 from holding Coronation Global Equity or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Global Equity vs. Ascendis Health
Performance |
| Timeline |
| Coronation Global Equity |
| Ascendis Health |
Coronation Global and Ascendis Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Global and Ascendis Health
The main advantage of trading using opposite Coronation Global and Ascendis Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global position performs unexpectedly, Ascendis Health 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 Ascendis Health will offset losses from the drop in Ascendis Health'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 |
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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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