Correlation Between Coronation Global and SLM Corp
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By analyzing existing cross correlation between Coronation Global Equity and Sanlam, you can compare the effects of market volatilities on Coronation Global and SLM Corp 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 SLM Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Global and SLM Corp.
Diversification Opportunities for Coronation Global and SLM Corp
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coronation and SLM is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Global Equity and Sanlam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLM Corp 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 SLM Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLM Corp has no effect on the direction of Coronation Global i.e., Coronation Global and SLM Corp go up and down completely randomly.
Pair Corralation between Coronation Global and SLM Corp
Assuming the 90 days trading horizon Coronation Global is expected to generate 1.82 times less return on investment than SLM Corp. But when comparing it to its historical volatility, Coronation Global Equity is 1.35 times less risky than SLM Corp. It trades about 0.08 of its potential returns per unit of risk. Sanlam is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 420,381 in Sanlam on September 2, 2024 and sell it today you would earn a total of 460,619 from holding Sanlam or generate 109.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Coronation Global Equity vs. Sanlam
Performance |
| Timeline |
| Coronation Global Equity |
| SLM Corp |
Coronation Global and SLM Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Global and SLM Corp
The main advantage of trading using opposite Coronation Global and SLM Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Global position performs unexpectedly, SLM Corp 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 SLM Corp will offset losses from the drop in SLM Corp'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 |
| SLM Corp vs. Sasol Ltd Bee | SLM Corp vs. Centaur Bci Balanced | SLM Corp vs. Sabvest Capital | SLM Corp 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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