Correlation Between Discovery Aggressive and Allan Gray
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By analyzing existing cross correlation between Discovery Aggressive Dynamic and Allan Gray Equity, you can compare the effects of market volatilities on Discovery Aggressive and Allan Gray 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 Discovery Aggressive with a short position of Allan Gray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Discovery Aggressive and Allan Gray.
Diversification Opportunities for Discovery Aggressive and Allan Gray
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Discovery and Allan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Discovery Aggressive Dynamic and Allan Gray Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allan Gray Equity and Discovery Aggressive 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 Discovery Aggressive Dynamic are associated (or correlated) with Allan Gray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allan Gray Equity has no effect on the direction of Discovery Aggressive i.e., Discovery Aggressive and Allan Gray go up and down completely randomly.
Pair Corralation between Discovery Aggressive and Allan Gray
Assuming the 90 days trading horizon Discovery Aggressive Dynamic is expected to generate 0.91 times more return on investment than Allan Gray. However, Discovery Aggressive Dynamic is 1.09 times less risky than Allan Gray. It trades about 0.06 of its potential returns per unit of risk. Allan Gray Equity is currently generating about 0.05 per unit of risk. If you would invest 138.00 in Discovery Aggressive Dynamic on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Discovery Aggressive Dynamic or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Discovery Aggressive Dynamic vs. Allan Gray Equity
Performance |
| Timeline |
| Discovery Aggressive |
| Allan Gray Equity |
Discovery Aggressive and Allan Gray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Discovery Aggressive and Allan Gray
The main advantage of trading using opposite Discovery Aggressive and Allan Gray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Discovery Aggressive position performs unexpectedly, Allan Gray 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 Allan Gray will offset losses from the drop in Allan Gray's long position.| Discovery Aggressive vs. Sasol Ltd Bee | Discovery Aggressive vs. Centaur Bci Balanced | Discovery Aggressive vs. Sabvest Capital | Discovery Aggressive vs. Growthpoint Properties |
| Allan Gray vs. 4d Bci Moderate | Allan Gray vs. Coronation Global Optimum | Allan Gray vs. Discovery Aggressive Dynamic | Allan Gray vs. Bci Best Blend |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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