Correlation Between CoreShares TotalWldStock and JSE
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By analyzing existing cross correlation between CoreShares TotalWldStock ETF and JSE Limited, you can compare the effects of market volatilities on CoreShares TotalWldStock 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 CoreShares TotalWldStock with a short position of JSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreShares TotalWldStock and JSE.
Diversification Opportunities for CoreShares TotalWldStock and JSE
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between CoreShares and JSE is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding CoreShares TotalWldStock ETF and JSE Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSE Limited and CoreShares TotalWldStock 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 TotalWldStock 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 CoreShares TotalWldStock i.e., CoreShares TotalWldStock and JSE go up and down completely randomly.
Pair Corralation between CoreShares TotalWldStock and JSE
Assuming the 90 days trading horizon CoreShares TotalWldStock ETF is expected to generate 0.62 times more return on investment than JSE. However, CoreShares TotalWldStock ETF is 1.61 times less risky than JSE. It trades about 0.08 of its potential returns per unit of risk. JSE Limited is currently generating about 0.04 per unit of risk. If you would invest 111,098 in CoreShares TotalWldStock ETF on August 30, 2024 and sell it today you would earn a total of 46,802 from holding CoreShares TotalWldStock ETF or generate 42.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreShares TotalWldStock ETF vs. JSE Limited
Performance |
| Timeline |
| CoreShares TotalWldStock |
| JSE Limited |
CoreShares TotalWldStock and JSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreShares TotalWldStock and JSE
The main advantage of trading using opposite CoreShares TotalWldStock and JSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreShares TotalWldStock 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.| CoreShares TotalWldStock vs. CoreShares Preference Share | CoreShares TotalWldStock vs. CoreShares SP 500 | CoreShares TotalWldStock 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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