Correlation Between Coronation Global and Dow Jones
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By analyzing existing cross correlation between Coronation Global Equity and Dow Jones Industrial, you can compare the effects of market volatilities on Coronation Global and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and Dow Jones.
Diversification Opportunities for Coronation Global and Dow Jones
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coronation and Dow is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Equity and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Coronation Global i.e., Coronation Global and Dow Jones go up and down completely randomly.
Pair Corralation between Coronation Global and Dow Jones
Assuming the 90 days trading horizon Coronation Global Equity is expected to generate 1.44 times more return on investment than Dow Jones. However, Coronation Global is 1.44 times more volatile than Dow Jones Industrial. It trades about 0.26 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.2 per unit of risk. If you would invest 229.00 in Coronation Global Equity on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Coronation Global Equity or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
Coronation Global Equity vs. Dow Jones Industrial
Performance |
| Timeline |
Coronation Global and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Coronation Global Equity
Pair trading matchups for Coronation Global
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Coronation Global and Dow Jones
The main advantage of trading using opposite Coronation Global and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Coronation Global vs. Coronation Global Optimum | Coronation Global vs. Coronation Balanced Plus | Coronation Global vs. Coronation Industrial | Coronation Global vs. Coronation Capital Plus |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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