Correlation Between Coreshares Index and Coronation Capital
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By analyzing existing cross correlation between Coreshares Index Tracker and Coronation Capital Plus, you can compare the effects of market volatilities on Coreshares Index and Coronation Capital 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 Coronation Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and Coronation Capital.
Diversification Opportunities for Coreshares Index and Coronation Capital
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coreshares and Coronation is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and Coronation Capital Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Capital Plus 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 Coronation Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Capital Plus has no effect on the direction of Coreshares Index i.e., Coreshares Index and Coronation Capital go up and down completely randomly.
Pair Corralation between Coreshares Index and Coronation Capital
Assuming the 90 days trading horizon Coreshares Index is expected to generate 8.31 times less return on investment than Coronation Capital. In addition to that, Coreshares Index is 2.26 times more volatile than Coronation Capital Plus. It trades about 0.02 of its total potential returns per unit of risk. Coronation Capital Plus is currently generating about 0.4 per unit of volatility. If you would invest 5,523 in Coronation Capital Plus on September 4, 2024 and sell it today you would earn a total of 216.00 from holding Coronation Capital Plus or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coreshares Index Tracker vs. Coronation Capital Plus
Performance |
| Timeline |
| Coreshares Index Tracker |
| Coronation Capital Plus |
Coreshares Index and Coronation Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and Coronation Capital
The main advantage of trading using opposite Coreshares Index and Coronation Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, Coronation Capital 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 Capital will offset losses from the drop in Coronation Capital'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 |
| Coronation Capital vs. Coronation Balanced Plus | Coronation Capital vs. Coronation Industrial | Coronation Capital vs. Coronation Global Equity | Coronation Capital vs. Coronation Financial |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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