Correlation Between Coronation Financial and Coronation Balanced
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By analyzing existing cross correlation between Coronation Financial and Coronation Balanced Plus, you can compare the effects of market volatilities on Coronation Financial and Coronation Balanced 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 Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Financial and Coronation Balanced.
Diversification Opportunities for Coronation Financial and Coronation Balanced
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coronation and Coronation is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Financial and Coronation Balanced Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Balanced Plus 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 Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Balanced Plus has no effect on the direction of Coronation Financial i.e., Coronation Financial and Coronation Balanced go up and down completely randomly.
Pair Corralation between Coronation Financial and Coronation Balanced
Assuming the 90 days trading horizon Coronation Financial is expected to generate 2.29 times more return on investment than Coronation Balanced. However, Coronation Financial is 2.29 times more volatile than Coronation Balanced Plus. It trades about 0.11 of its potential returns per unit of risk. Coronation Balanced Plus is currently generating about 0.13 per unit of risk. If you would invest 5,688 in Coronation Financial on September 4, 2024 and sell it today you would earn a total of 1,767 from holding Coronation Financial or generate 31.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Financial vs. Coronation Balanced Plus
Performance |
| Timeline |
| Coronation Financial |
| Coronation Balanced Plus |
Coronation Financial and Coronation Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Financial and Coronation Balanced
The main advantage of trading using opposite Coronation Financial and Coronation Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Financial position performs unexpectedly, Coronation Balanced 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 Balanced will offset losses from the drop in Coronation Balanced's long position.| Coronation Financial vs. Coronation Balanced Plus | Coronation Financial vs. Coronation Industrial | Coronation Financial vs. Coronation Capital Plus | Coronation Financial vs. Coronation Global Equity |
| Coronation Balanced vs. Coronation Global Optimum | Coronation Balanced vs. Coronation Balanced Plus | Coronation Balanced vs. Coronation Industrial | Coronation Balanced vs. Coronation Capital Plus |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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