Correlation Between Growthpoint Properties and AfricaRhodium ETF
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By analyzing existing cross correlation between Growthpoint Properties and AfricaRhodium ETF, you can compare the effects of market volatilities on Growthpoint Properties 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 Growthpoint Properties with a short position of AfricaRhodium ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and AfricaRhodium ETF.
Diversification Opportunities for Growthpoint Properties and AfricaRhodium ETF
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Growthpoint and AfricaRhodium is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and AfricaRhodium ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfricaRhodium ETF 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 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 Growthpoint Properties i.e., Growthpoint Properties and AfricaRhodium ETF go up and down completely randomly.
Pair Corralation between Growthpoint Properties and AfricaRhodium ETF
Assuming the 90 days trading horizon Growthpoint Properties is expected to generate 0.82 times more return on investment than AfricaRhodium ETF. However, Growthpoint Properties is 1.22 times less risky than AfricaRhodium ETF. It trades about -0.06 of its potential returns per unit of risk. AfricaRhodium ETF is currently generating about -0.11 per unit of risk. If you would invest 133,700 in Growthpoint Properties on August 27, 2024 and sell it today you would lose (2,300) from holding Growthpoint Properties or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growthpoint Properties vs. AfricaRhodium ETF
Performance |
| Timeline |
| Growthpoint Properties |
| AfricaRhodium ETF |
Growthpoint Properties and AfricaRhodium ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and AfricaRhodium ETF
The main advantage of trading using opposite Growthpoint Properties and AfricaRhodium ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties 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.| Growthpoint Properties vs. Blue Label Telecoms | Growthpoint Properties vs. Harmony Gold Mining | Growthpoint Properties vs. HomeChoice Investments | Growthpoint Properties vs. City Lodge Hotels |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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