Correlation Between Coreshares Index and JSE
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By analyzing existing cross correlation between Coreshares Index Tracker and JSE Limited, you can compare the effects of market volatilities on Coreshares Index and JSE 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 JSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and JSE.
Diversification Opportunities for Coreshares Index and JSE
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coreshares and JSE is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and JSE Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSE Limited 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 JSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSE Limited has no effect on the direction of Coreshares Index i.e., Coreshares Index and JSE go up and down completely randomly.
Pair Corralation between Coreshares Index and JSE
Assuming the 90 days trading horizon Coreshares Index Tracker is expected to generate 0.64 times more return on investment than JSE. However, Coreshares Index Tracker is 1.56 times less risky than JSE. It trades about -0.05 of its potential returns per unit of risk. JSE Limited is currently generating about -0.2 per unit of risk. If you would invest 111,600 in Coreshares Index Tracker on August 30, 2024 and sell it today you would lose (1,000.00) from holding Coreshares Index Tracker or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coreshares Index Tracker vs. JSE Limited
Performance |
| Timeline |
| Coreshares Index Tracker |
| JSE Limited |
Coreshares Index and JSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and JSE
The main advantage of trading using opposite Coreshares Index and JSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, JSE 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 JSE will offset losses from the drop in JSE's long position.| Coreshares Index vs. CoreShares Preference Share | Coreshares Index vs. CoreShares TotalWldStock ETF | Coreshares Index vs. CoreShares SP 500 | Coreshares Index vs. CoreShares Income AMETF |
| JSE vs. British American Tobacco | JSE vs. Anglo American PLC | JSE vs. Anglo American Platinum | JSE vs. ABSA Bank Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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