Correlation Between Coreshares Index and Nedbank
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By analyzing existing cross correlation between Coreshares Index Tracker and Nedbank Group, you can compare the effects of market volatilities on Coreshares Index and Nedbank 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 Nedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and Nedbank.
Diversification Opportunities for Coreshares Index and Nedbank
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coreshares and Nedbank is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and Nedbank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nedbank Group 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 Nedbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nedbank Group has no effect on the direction of Coreshares Index i.e., Coreshares Index and Nedbank go up and down completely randomly.
Pair Corralation between Coreshares Index and Nedbank
Assuming the 90 days trading horizon Coreshares Index Tracker is expected to generate 0.67 times more return on investment than Nedbank. However, Coreshares Index Tracker is 1.48 times less risky than Nedbank. It trades about 0.04 of its potential returns per unit of risk. Nedbank Group is currently generating about -0.05 per unit of risk. If you would invest 111,061 in Coreshares Index Tracker on November 27, 2024 and sell it today you would earn a total of 2,939 from holding Coreshares Index Tracker or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coreshares Index Tracker vs. Nedbank Group
Performance |
| Timeline |
| Coreshares Index Tracker |
| Nedbank Group |
Coreshares Index and Nedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and Nedbank
The main advantage of trading using opposite Coreshares Index and Nedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, Nedbank 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 Nedbank will offset losses from the drop in Nedbank's long position.| Coreshares Index vs. Sasol Ltd Bee | Coreshares Index vs. Sabvest Capital | Coreshares Index vs. Growthpoint Properties | Coreshares Index vs. Coronation Global Equity |
| Nedbank vs. British American Tobacco | Nedbank vs. Astral Foods | Nedbank vs. Brimstone Investment | Nedbank vs. eMedia Holdings 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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