Correlation Between Coreshares Index and RMB Holdings
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By analyzing existing cross correlation between Coreshares Index Tracker and RMB Holdings, you can compare the effects of market volatilities on Coreshares Index and RMB Holdings 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 RMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and RMB Holdings.
Diversification Opportunities for Coreshares Index and RMB Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coreshares and RMB is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and RMB Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RMB Holdings 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 RMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RMB Holdings has no effect on the direction of Coreshares Index i.e., Coreshares Index and RMB Holdings go up and down completely randomly.
Pair Corralation between Coreshares Index and RMB Holdings
Assuming the 90 days trading horizon Coreshares Index Tracker is expected to generate 0.34 times more return on investment than RMB Holdings. However, Coreshares Index Tracker is 2.96 times less risky than RMB Holdings. It trades about 0.03 of its potential returns per unit of risk. RMB Holdings is currently generating about -0.01 per unit of risk. If you would invest 99,741 in Coreshares Index Tracker on September 2, 2024 and sell it today you would earn a total of 8,259 from holding Coreshares Index Tracker or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.5% |
| Values | Daily Returns |
Coreshares Index Tracker vs. RMB Holdings
Performance |
| Timeline |
| Coreshares Index Tracker |
| RMB Holdings |
Coreshares Index and RMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and RMB Holdings
The main advantage of trading using opposite Coreshares Index and RMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, RMB Holdings 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 RMB Holdings will offset losses from the drop in RMB Holdings' long position.| Coreshares Index vs. FNB ETN on | Coreshares Index vs. Satrix MSCI World | Coreshares Index vs. GSETNC | Coreshares Index vs. Satrix Swix Top |
| RMB Holdings vs. African Media Entertainment | RMB Holdings vs. ABSA Bank Limited | RMB Holdings vs. eMedia Holdings Limited | RMB Holdings vs. HomeChoice Investments |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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