Correlation Between Coronation Financial and Coronation Top
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By analyzing existing cross correlation between Coronation Financial and Coronation Top 20, you can compare the effects of market volatilities on Coronation Financial and Coronation Top 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 Top. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coronation Financial and Coronation Top.
Diversification Opportunities for Coronation Financial and Coronation Top
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coronation and Coronation is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Coronation Financial and Coronation Top 20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Top 20 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 Top. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Top 20 has no effect on the direction of Coronation Financial i.e., Coronation Financial and Coronation Top go up and down completely randomly.
Pair Corralation between Coronation Financial and Coronation Top
Assuming the 90 days trading horizon Coronation Financial is expected to generate 1.22 times more return on investment than Coronation Top. However, Coronation Financial is 1.22 times more volatile than Coronation Top 20. It trades about 0.06 of its potential returns per unit of risk. Coronation Top 20 is currently generating about 0.03 per unit of risk. If you would invest 5,394 in Coronation Financial on September 3, 2024 and sell it today you would earn a total of 2,015 from holding Coronation Financial or generate 37.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coronation Financial vs. Coronation Top 20
Performance |
| Timeline |
| Coronation Financial |
| Coronation Top 20 |
Coronation Financial and Coronation Top Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coronation Financial and Coronation Top
The main advantage of trading using opposite Coronation Financial and Coronation Top positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coronation Financial position performs unexpectedly, Coronation Top 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 Top will offset losses from the drop in Coronation Top'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 Top vs. Sasol Ltd Bee | Coronation Top vs. Centaur Bci Balanced | Coronation Top vs. Sabvest Capital | Coronation Top 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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