Correlation Between CSHG Real and Sibanye Stillwater
Can any of the company-specific risk be diversified away by investing in both CSHG Real and Sibanye Stillwater at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CSHG Real and Sibanye Stillwater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSHG Real Estate and Sibanye Stillwater Limited, you can compare the effects of market volatilities on CSHG Real and Sibanye Stillwater 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 CSHG Real with a short position of Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSHG Real and Sibanye Stillwater.
Diversification Opportunities for CSHG Real and Sibanye Stillwater
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CSHG and Sibanye is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CSHG Real Estate and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater and CSHG Real 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 CSHG Real Estate are associated (or correlated) with Sibanye Stillwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Stillwater has no effect on the direction of CSHG Real i.e., CSHG Real and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between CSHG Real and Sibanye Stillwater
Assuming the 90 days trading horizon CSHG Real Estate is expected to under-perform the Sibanye Stillwater. But the fund apears to be less risky and, when comparing its historical volatility, CSHG Real Estate is 2.3 times less risky than Sibanye Stillwater. The fund trades about -0.02 of its potential returns per unit of risk. The Sibanye Stillwater Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,102 in Sibanye Stillwater Limited on October 21, 2024 and sell it today you would lose (12.00) from holding Sibanye Stillwater Limited or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSHG Real Estate vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| CSHG Real Estate |
| Sibanye Stillwater |
CSHG Real and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSHG Real and Sibanye Stillwater
The main advantage of trading using opposite CSHG Real and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSHG Real position performs unexpectedly, Sibanye Stillwater 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 Sibanye Stillwater will offset losses from the drop in Sibanye Stillwater's long position.| CSHG Real vs. Polo Fundo de | CSHG Real vs. BTG Pactual Logstica | CSHG Real vs. Plano Plano Desenvolvimento | CSHG Real vs. Gen Digital |
| Sibanye Stillwater vs. CVS Health | Sibanye Stillwater vs. Verizon Communications | Sibanye Stillwater vs. Liberty Broadband | Sibanye Stillwater vs. Universal Health Services, |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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