Correlation Between Growthpoint Properties and Indexco Limited
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By analyzing existing cross correlation between Growthpoint Properties and Indexco Limited , you can compare the effects of market volatilities on Growthpoint Properties and Indexco Limited 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 Indexco Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growthpoint Properties and Indexco Limited.
Diversification Opportunities for Growthpoint Properties and Indexco Limited
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growthpoint and Indexco is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Growthpoint Properties and Indexco Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indexco Limited 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 Indexco Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indexco Limited has no effect on the direction of Growthpoint Properties i.e., Growthpoint Properties and Indexco Limited go up and down completely randomly.
Pair Corralation between Growthpoint Properties and Indexco Limited
Assuming the 90 days trading horizon Growthpoint Properties is expected to generate 1.56 times more return on investment than Indexco Limited. However, Growthpoint Properties is 1.56 times more volatile than Indexco Limited . It trades about 0.03 of its potential returns per unit of risk. Indexco Limited is currently generating about 0.03 per unit of risk. If you would invest 112,282 in Growthpoint Properties on August 30, 2024 and sell it today you would earn a total of 17,918 from holding Growthpoint Properties or generate 15.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Growthpoint Properties vs. Indexco Limited
Performance |
| Timeline |
| Growthpoint Properties |
| Indexco Limited |
Growthpoint Properties and Indexco Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growthpoint Properties and Indexco Limited
The main advantage of trading using opposite Growthpoint Properties and Indexco Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growthpoint Properties position performs unexpectedly, Indexco Limited 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 Indexco Limited will offset losses from the drop in Indexco Limited's long position.| Growthpoint Properties vs. AfricaRhodium ETF | Growthpoint Properties vs. CoreShares Preference Share | Growthpoint Properties vs. CoreShares TotalWldStock ETF | Growthpoint Properties vs. Shoprite Holdings |
| Indexco Limited vs. FNB ETN on | Indexco Limited vs. Satrix MSCI World | Indexco Limited vs. GSETNC | Indexco Limited vs. Satrix Swix Top |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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