Correlation Between African Media and CoreShares Preference
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By analyzing existing cross correlation between African Media Entertainment and CoreShares Preference Share, you can compare the effects of market volatilities on African Media and CoreShares Preference 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 African Media with a short position of CoreShares Preference. Check out your portfolio center. Please also check ongoing floating volatility patterns of African Media and CoreShares Preference.
Diversification Opportunities for African Media and CoreShares Preference
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between African and CoreShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding African Media Entertainment and CoreShares Preference Share in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreShares Preference and African Media 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 African Media Entertainment are associated (or correlated) with CoreShares Preference. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreShares Preference has no effect on the direction of African Media i.e., African Media and CoreShares Preference go up and down completely randomly.
Pair Corralation between African Media and CoreShares Preference
Assuming the 90 days trading horizon African Media Entertainment is expected to generate 84.57 times more return on investment than CoreShares Preference. However, African Media is 84.57 times more volatile than CoreShares Preference Share. It trades about 0.05 of its potential returns per unit of risk. CoreShares Preference Share is currently generating about -0.01 per unit of risk. If you would invest 272,077 in African Media Entertainment on August 27, 2024 and sell it today you would earn a total of 117,923 from holding African Media Entertainment or generate 43.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
African Media Entertainment vs. CoreShares Preference Share
Performance |
| Timeline |
| African Media Entert |
| CoreShares Preference |
African Media and CoreShares Preference Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with African Media and CoreShares Preference
The main advantage of trading using opposite African Media and CoreShares Preference positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if African Media position performs unexpectedly, CoreShares Preference 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 CoreShares Preference will offset losses from the drop in CoreShares Preference's long position.| African Media vs. Sasol Ltd Bee | African Media vs. Growthpoint Properties | African Media vs. AfricaRhodium ETF | African Media vs. CoreShares Preference Share |
| CoreShares Preference vs. Europa Metals | CoreShares Preference vs. British American Tobacco | CoreShares Preference vs. Kap Industrial Holdings | CoreShares Preference vs. Anglo American Platinum |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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