Correlation Between Coreshares Index and Absa Multi
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By analyzing existing cross correlation between Coreshares Index Tracker and Absa Multi Managed, you can compare the effects of market volatilities on Coreshares Index and Absa Multi 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 Coreshares Index with a short position of Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and Absa Multi.
Diversification Opportunities for Coreshares Index and Absa Multi
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coreshares and Absa is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and Absa Multi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Multi Managed and Coreshares Index 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 Coreshares Index Tracker are associated (or correlated) with Absa Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Multi Managed has no effect on the direction of Coreshares Index i.e., Coreshares Index and Absa Multi go up and down completely randomly.
Pair Corralation between Coreshares Index and Absa Multi
Assuming the 90 days trading horizon Coreshares Index Tracker is expected to under-perform the Absa Multi. In addition to that, Coreshares Index is 3.0 times more volatile than Absa Multi Managed. It trades about -0.04 of its total potential returns per unit of risk. Absa Multi Managed is currently generating about 0.21 per unit of volatility. If you would invest 253.00 in Absa Multi Managed on September 5, 2024 and sell it today you would earn a total of 7.00 from holding Absa Multi Managed or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Coreshares Index Tracker vs. Absa Multi Managed
Performance |
| Timeline |
| Coreshares Index Tracker |
| Absa Multi Managed |
Coreshares Index and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and Absa Multi
The main advantage of trading using opposite Coreshares Index and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, Absa Multi 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 Absa Multi will offset losses from the drop in Absa Multi's long position.| Coreshares Index vs. Libstar Holdings | Coreshares Index vs. City Lodge Hotels | Coreshares Index vs. African Media Entertainment | Coreshares Index vs. Europa Metals |
| Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Sabvest Capital | Absa Multi 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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