Correlation Between Growthpoint Properties and Absa Multi
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By analyzing existing cross correlation between Growthpoint Properties and Absa Multi Managed, you can compare the effects of market volatilities on Growthpoint Properties and Absa Multi 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 Growthpoint Properties with a short position of Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and Absa Multi.
Diversification Opportunities for Growthpoint Properties and Absa Multi
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Growthpoint and Absa is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and Absa Multi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Multi Managed and Growthpoint Properties 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 Growthpoint Properties are associated (or correlated) with Absa Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Multi Managed has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and Absa Multi go up and down completely randomly.
Pair Corralation between Growthpoint Properties and Absa Multi
Assuming the 90 days trading horizon Growthpoint Properties is expected to generate 3.49 times more return on investment than Absa Multi. However, Growthpoint Properties is 3.49 times more volatile than Absa Multi Managed. It trades about 0.03 of its potential returns per unit of risk. Absa Multi Managed is currently generating about 0.1 per unit of risk. If you would invest 111,796 in Growthpoint Properties on September 5, 2024 and sell it today you would earn a total of 21,204 from holding Growthpoint Properties or generate 18.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Growthpoint Properties vs. Absa Multi Managed
Performance |
| Timeline |
| Growthpoint Properties |
| Absa Multi Managed |
Growthpoint Properties and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and Absa Multi
The main advantage of trading using opposite Growthpoint Properties and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, Absa Multi 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 Absa Multi will offset losses from the drop in Absa Multi's long position.| Growthpoint Properties vs. Afine Investments | Growthpoint Properties vs. Capitec Bank Holdings | Growthpoint Properties vs. Advtech | Growthpoint Properties vs. HomeChoice Investments |
| Absa Multi vs. Sasol Ltd Bee | Absa Multi vs. Centaur Bci Balanced | Absa Multi vs. Sabvest Capital | Absa Multi vs. Growthpoint Properties |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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