Correlation Between Coronation Financial and Coronation Industrial
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By analyzing existing cross correlation between Coronation Financial and Coronation Industrial, you can compare the effects of market volatilities on Coronation Financial and Coronation Industrial 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 Financial with a short position of Coronation Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Financial and Coronation Industrial.
Diversification Opportunities for Coronation Financial and Coronation Industrial
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coronation and Coronation is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Financial and Coronation Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Industrial and Coronation Financial 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 Financial are associated (or correlated) with Coronation Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Industrial has no effect on the direction of Coronation Financial i.e., Coronation Financial and Coronation Industrial go up and down completely randomly.
Pair Corralation between Coronation Financial and Coronation Industrial
Assuming the 90 days trading horizon Coronation Financial is expected to generate 1.38 times more return on investment than Coronation Industrial. However, Coronation Financial is 1.38 times more volatile than Coronation Industrial. It trades about 0.06 of its potential returns per unit of risk. Coronation Industrial is currently generating about 0.03 per unit of risk. If you would invest 7,347 in Coronation Financial on September 2, 2024 and sell it today you would earn a total of 62.00 from holding Coronation Financial or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Financial vs. Coronation Industrial
Performance |
| Timeline |
| Coronation Financial |
| Coronation Industrial |
Coronation Financial and Coronation Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Financial and Coronation Industrial
The main advantage of trading using opposite Coronation Financial and Coronation Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Financial position performs unexpectedly, Coronation Industrial 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 Coronation Industrial will offset losses from the drop in Coronation Industrial's long position.| Coronation Financial vs. Sasol Ltd Bee | Coronation Financial vs. Centaur Bci Balanced | Coronation Financial vs. Sabvest Capital | Coronation Financial vs. Growthpoint Properties |
| Coronation Industrial vs. Sasol Ltd Bee | Coronation Industrial vs. Centaur Bci Balanced | Coronation Industrial vs. Sabvest Capital | Coronation Industrial 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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