Correlation Between Coreshares Index and Firstrand
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By analyzing existing cross correlation between Coreshares Index Tracker and Firstrand, you can compare the effects of market volatilities on Coreshares Index and Firstrand 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 Firstrand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and Firstrand.
Diversification Opportunities for Coreshares Index and Firstrand
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coreshares and Firstrand is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and Firstrand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firstrand 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 Firstrand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firstrand has no effect on the direction of Coreshares Index i.e., Coreshares Index and Firstrand go up and down completely randomly.
Pair Corralation between Coreshares Index and Firstrand
Assuming the 90 days trading horizon Coreshares Index is expected to generate 1.27 times less return on investment than Firstrand. But when comparing it to its historical volatility, Coreshares Index Tracker is 1.61 times less risky than Firstrand. It trades about 0.04 of its potential returns per unit of risk. Firstrand is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 595,388 in Firstrand on November 29, 2024 and sell it today you would earn a total of 132,312 from holding Firstrand or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.82% |
| Values | Daily Returns |
Coreshares Index Tracker vs. Firstrand
Performance |
| Timeline |
| Coreshares Index Tracker |
| Firstrand |
Coreshares Index and Firstrand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and Firstrand
The main advantage of trading using opposite Coreshares Index and Firstrand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, Firstrand 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 Firstrand will offset losses from the drop in Firstrand's long position.| Coreshares Index vs. FNB ETN on | Coreshares Index vs. Satrix MSCI World | Coreshares Index vs. GSETNC | Coreshares Index vs. Satrix Swix Top |
| Firstrand vs. Deneb Investments | Firstrand vs. Zeder Investments | Firstrand vs. Datatec | Firstrand vs. CA Sales Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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