Correlation Between Kumba Iron and Centaur Bci
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By analyzing existing cross correlation between Kumba Iron Ore and Centaur Bci Balanced, you can compare the effects of market volatilities on Kumba Iron and Centaur Bci 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 Kumba Iron with a short position of Centaur Bci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kumba Iron and Centaur Bci.
Diversification Opportunities for Kumba Iron and Centaur Bci
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kumba and Centaur is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kumba Iron Ore and Centaur Bci Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Bci Balanced and Kumba Iron 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 Kumba Iron Ore are associated (or correlated) with Centaur Bci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Bci Balanced has no effect on the direction of Kumba Iron i.e., Kumba Iron and Centaur Bci go up and down completely randomly.
Pair Corralation between Kumba Iron and Centaur Bci
Assuming the 90 days trading horizon Kumba Iron Ore is expected to under-perform the Centaur Bci. In addition to that, Kumba Iron is 6.31 times more volatile than Centaur Bci Balanced. It trades about -0.1 of its total potential returns per unit of risk. Centaur Bci Balanced is currently generating about 0.16 per unit of volatility. If you would invest 239.00 in Centaur Bci Balanced on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Centaur Bci Balanced or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kumba Iron Ore vs. Centaur Bci Balanced
Performance |
| Timeline |
| Kumba Iron Ore |
| Centaur Bci Balanced |
Kumba Iron and Centaur Bci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kumba Iron and Centaur Bci
The main advantage of trading using opposite Kumba Iron and Centaur Bci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kumba Iron position performs unexpectedly, Centaur Bci 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 Centaur Bci will offset losses from the drop in Centaur Bci's long position.| Kumba Iron vs. Ascendis Health | Kumba Iron vs. eMedia Holdings Limited | Kumba Iron vs. Hosken Consolidated Investments | Kumba Iron vs. Zeder Investments |
| Centaur Bci vs. Sabvest Capital | Centaur Bci vs. Growthpoint Properties | Centaur Bci vs. AfricaRhodium ETF | Centaur Bci vs. CoreShares Preference Share |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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