Correlation Between Growthpoint Properties and Absa Prudential
Specify exactly 2 symbols:
By analyzing existing cross correlation between Growthpoint Properties and Absa Prudential, you can compare the effects of market volatilities on Growthpoint Properties and Absa Prudential 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 Prudential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and Absa Prudential.
Diversification Opportunities for Growthpoint Properties and Absa Prudential
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growthpoint and Absa is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and Absa Prudential in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Prudential 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 Prudential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Prudential has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and Absa Prudential go up and down completely randomly.
Pair Corralation between Growthpoint Properties and Absa Prudential
Assuming the 90 days trading horizon Growthpoint Properties is expected to generate 1.14 times less return on investment than Absa Prudential. In addition to that, Growthpoint Properties is 3.78 times more volatile than Absa Prudential. It trades about 0.02 of its total potential returns per unit of risk. Absa Prudential is currently generating about 0.1 per unit of volatility. If you would invest 370.00 in Absa Prudential on September 13, 2024 and sell it today you would earn a total of 69.00 from holding Absa Prudential or generate 18.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Growthpoint Properties vs. Absa Prudential
Performance |
| Timeline |
| Growthpoint Properties |
| Absa Prudential |
Growthpoint Properties and Absa Prudential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and Absa Prudential
The main advantage of trading using opposite Growthpoint Properties and Absa Prudential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, Absa Prudential 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 Prudential will offset losses from the drop in Absa Prudential's long position.| Growthpoint Properties vs. Redefine Properties | Growthpoint Properties vs. Fortress Income | Growthpoint Properties vs. Emira Property | Growthpoint Properties vs. Dipula Income |
| Absa Prudential vs. NewFunds Low Volatility | Absa Prudential vs. Sasol Ltd Bee | Absa Prudential vs. Centaur Bci Balanced | Absa Prudential vs. Coronation Global Equity |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |