Correlation Between Coronation Global and AfricaRhodium ETF
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By analyzing existing cross correlation between Coronation Global Equity and AfricaRhodium ETF, you can compare the effects of market volatilities on Coronation Global and AfricaRhodium ETF 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 AfricaRhodium ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and AfricaRhodium ETF.
Diversification Opportunities for Coronation Global and AfricaRhodium ETF
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coronation and AfricaRhodium is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Equity and AfricaRhodium ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfricaRhodium ETF 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 AfricaRhodium ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfricaRhodium ETF has no effect on the direction of Coronation Global i.e., Coronation Global and AfricaRhodium ETF go up and down completely randomly.
Pair Corralation between Coronation Global and AfricaRhodium ETF
Assuming the 90 days trading horizon Coronation Global Equity is expected to generate 0.5 times more return on investment than AfricaRhodium ETF. However, Coronation Global Equity is 2.0 times less risky than AfricaRhodium ETF. It trades about 0.09 of its potential returns per unit of risk. AfricaRhodium ETF is currently generating about 0.02 per unit of risk. If you would invest 209.00 in Coronation Global Equity on September 2, 2024 and sell it today you would earn a total of 52.00 from holding Coronation Global Equity or generate 24.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Global Equity vs. AfricaRhodium ETF
Performance |
| Timeline |
| Coronation Global Equity |
| AfricaRhodium ETF |
Coronation Global and AfricaRhodium ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Global and AfricaRhodium ETF
The main advantage of trading using opposite Coronation Global and AfricaRhodium ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global position performs unexpectedly, AfricaRhodium ETF 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 AfricaRhodium ETF will offset losses from the drop in AfricaRhodium ETF'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 |
| AfricaRhodium ETF vs. Europa Metals | AfricaRhodium ETF vs. JSE Limited | AfricaRhodium ETF vs. British American Tobacco | AfricaRhodium ETF vs. Kap Industrial Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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