Correlation Between Bowler Metcalf and AfricaRhodium ETF
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By analyzing existing cross correlation between Bowler Metcalf and AfricaRhodium ETF, you can compare the effects of market volatilities on Bowler Metcalf and AfricaRhodium ETF 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 Bowler Metcalf with a short position of AfricaRhodium ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bowler Metcalf and AfricaRhodium ETF.
Diversification Opportunities for Bowler Metcalf and AfricaRhodium ETF
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bowler and AfricaRhodium is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bowler Metcalf and AfricaRhodium ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfricaRhodium ETF and Bowler Metcalf 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 Bowler Metcalf are associated (or correlated) with AfricaRhodium ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfricaRhodium ETF has no effect on the direction of Bowler Metcalf i.e., Bowler Metcalf and AfricaRhodium ETF go up and down completely randomly.
Pair Corralation between Bowler Metcalf and AfricaRhodium ETF
Assuming the 90 days trading horizon Bowler Metcalf is expected to generate 1.86 times more return on investment than AfricaRhodium ETF. However, Bowler Metcalf is 1.86 times more volatile than AfricaRhodium ETF. It trades about 0.05 of its potential returns per unit of risk. AfricaRhodium ETF is currently generating about -0.03 per unit of risk. If you would invest 83,500 in Bowler Metcalf on August 27, 2024 and sell it today you would earn a total of 53,400 from holding Bowler Metcalf or generate 63.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bowler Metcalf vs. AfricaRhodium ETF
Performance |
| Timeline |
| Bowler Metcalf |
| AfricaRhodium ETF |
Bowler Metcalf and AfricaRhodium ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bowler Metcalf and AfricaRhodium ETF
The main advantage of trading using opposite Bowler Metcalf and AfricaRhodium ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bowler Metcalf position performs unexpectedly, AfricaRhodium ETF 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 AfricaRhodium ETF will offset losses from the drop in AfricaRhodium ETF's long position.| Bowler Metcalf vs. Nampak | Bowler Metcalf vs. Sasol Ltd Bee | Bowler Metcalf vs. Growthpoint Properties | Bowler Metcalf vs. AfricaRhodium ETF |
| AfricaRhodium ETF vs. Europa Metals | AfricaRhodium ETF vs. British American Tobacco | AfricaRhodium ETF vs. Kap Industrial Holdings | AfricaRhodium ETF vs. Anglo American Platinum |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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