Correlation Between Coreshares Index and Standard Bank
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By analyzing existing cross correlation between Coreshares Index Tracker and Standard Bank Group, you can compare the effects of market volatilities on Coreshares Index and Standard Bank 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 Standard Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and Standard Bank.
Diversification Opportunities for Coreshares Index and Standard Bank
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coreshares and Standard is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and Standard Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Bank 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 Standard Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Bank Group has no effect on the direction of Coreshares Index i.e., Coreshares Index and Standard Bank go up and down completely randomly.
Pair Corralation between Coreshares Index and Standard Bank
Assuming the 90 days trading horizon Coreshares Index is expected to generate 2.36 times less return on investment than Standard Bank. But when comparing it to its historical volatility, Coreshares Index Tracker is 1.41 times less risky than Standard Bank. It trades about 0.04 of its potential returns per unit of risk. Standard Bank Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 900,000 in Standard Bank Group on August 28, 2024 and sell it today you would earn a total of 45,000 from holding Standard Bank Group or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coreshares Index Tracker vs. Standard Bank Group
Performance |
| Timeline |
| Coreshares Index Tracker |
| Standard Bank Group |
Coreshares Index and Standard Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and Standard Bank
The main advantage of trading using opposite Coreshares Index and Standard Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, Standard Bank 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 Standard Bank will offset losses from the drop in Standard Bank's long position.| Coreshares Index vs. Satrix MSCI World | Coreshares Index vs. GSETNC | Coreshares Index vs. Satrix Swix Top |
| Standard Bank vs. Investec Limited NON | Standard Bank vs. Sasol Ltd Bee | Standard Bank vs. Centaur Bci Balanced | Standard Bank vs. Sabvest Capital |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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