Correlation Between Coreshares Index and Thungela Resources
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By analyzing existing cross correlation between Coreshares Index Tracker and Thungela Resources Limited, you can compare the effects of market volatilities on Coreshares Index and Thungela Resources 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 Thungela Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coreshares Index and Thungela Resources.
Diversification Opportunities for Coreshares Index and Thungela Resources
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coreshares and Thungela is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Coreshares Index Tracker and Thungela Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thungela Resources 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 Thungela Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thungela Resources has no effect on the direction of Coreshares Index i.e., Coreshares Index and Thungela Resources go up and down completely randomly.
Pair Corralation between Coreshares Index and Thungela Resources
Assuming the 90 days trading horizon Coreshares Index Tracker is expected to generate 0.38 times more return on investment than Thungela Resources. However, Coreshares Index Tracker is 2.63 times less risky than Thungela Resources. It trades about 0.04 of its potential returns per unit of risk. Thungela Resources Limited is currently generating about 0.01 per unit of risk. If you would invest 99,082 in Coreshares Index Tracker on November 8, 2024 and sell it today you would earn a total of 13,418 from holding Coreshares Index Tracker or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.55% |
| Values | Daily Returns |
Coreshares Index Tracker vs. Thungela Resources Limited
Performance |
| Timeline |
| Coreshares Index Tracker |
| Thungela Resources |
Coreshares Index and Thungela Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coreshares Index and Thungela Resources
The main advantage of trading using opposite Coreshares Index and Thungela Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coreshares Index position performs unexpectedly, Thungela Resources 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 Thungela Resources will offset losses from the drop in Thungela Resources' long position.| Coreshares Index vs. Satrix MSCI World | Coreshares Index vs. City Lodge Hotels | Coreshares Index vs. AfricaRhodium ETF | Coreshares Index vs. African Media Entertainment |
| Thungela Resources vs. We Buy Cars | Thungela Resources vs. Standard Bank Group | Thungela Resources vs. MC Mining | Thungela Resources vs. Ascendis Health |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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