Correlation Between AfricaRhodium ETF and JSE
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By analyzing existing cross correlation between AfricaRhodium ETF and JSE Limited, you can compare the effects of market volatilities on AfricaRhodium ETF and JSE 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 AfricaRhodium ETF with a short position of JSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfricaRhodium ETF and JSE.
Diversification Opportunities for AfricaRhodium ETF and JSE
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AfricaRhodium and JSE is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AfricaRhodium ETF and JSE Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSE Limited and AfricaRhodium ETF 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 AfricaRhodium ETF are associated (or correlated) with JSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSE Limited has no effect on the direction of AfricaRhodium ETF i.e., AfricaRhodium ETF and JSE go up and down completely randomly.
Pair Corralation between AfricaRhodium ETF and JSE
Assuming the 90 days trading horizon AfricaRhodium ETF is expected to under-perform the JSE. In addition to that, AfricaRhodium ETF is 2.07 times more volatile than JSE Limited. It trades about -0.05 of its total potential returns per unit of risk. JSE Limited is currently generating about 0.04 per unit of volatility. If you would invest 948,130 in JSE Limited on August 30, 2024 and sell it today you would earn a total of 240,770 from holding JSE Limited or generate 25.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
AfricaRhodium ETF vs. JSE Limited
Performance |
| Timeline |
| AfricaRhodium ETF |
| JSE Limited |
AfricaRhodium ETF and JSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfricaRhodium ETF and JSE
The main advantage of trading using opposite AfricaRhodium ETF and JSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfricaRhodium ETF position performs unexpectedly, JSE 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 JSE will offset losses from the drop in JSE's long position.| AfricaRhodium ETF vs. CoreShares Preference Share | AfricaRhodium ETF vs. CoreShares TotalWldStock ETF | AfricaRhodium ETF vs. CoreShares SP 500 | AfricaRhodium ETF vs. CoreShares Income AMETF |
| JSE vs. British American Tobacco | JSE vs. Anglo American PLC | JSE vs. Anglo American Platinum | JSE vs. ABSA Bank 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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