Correlation Between CoreShares Preference and JSE
Specify exactly 2 symbols:
By analyzing existing cross correlation between CoreShares Preference Share and JSE Limited, you can compare the effects of market volatilities on CoreShares Preference and JSE 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 CoreShares Preference with a short position of JSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreShares Preference and JSE.
Diversification Opportunities for CoreShares Preference and JSE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CoreShares and JSE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CoreShares Preference Share and JSE Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSE Limited and CoreShares Preference 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 CoreShares Preference Share are associated (or correlated) with JSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSE Limited has no effect on the direction of CoreShares Preference i.e., CoreShares Preference and JSE go up and down completely randomly.
Pair Corralation between CoreShares Preference and JSE
Assuming the 90 days trading horizon CoreShares Preference Share is expected to under-perform the JSE. But the etf apears to be less risky and, when comparing its historical volatility, CoreShares Preference Share is 2.67 times less risky than JSE. The etf trades about -0.01 of its potential returns per unit of risk. The JSE Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 948,130 in JSE Limited on August 30, 2024 and sell it today you would earn a total of 240,770 from holding JSE Limited or generate 25.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CoreShares Preference Share vs. JSE Limited
Performance |
| Timeline |
| CoreShares Preference |
| JSE Limited |
CoreShares Preference and JSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreShares Preference and JSE
The main advantage of trading using opposite CoreShares Preference and JSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreShares Preference position performs unexpectedly, JSE 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 JSE will offset losses from the drop in JSE's long position.| CoreShares Preference vs. CoreShares TotalWldStock ETF | CoreShares Preference vs. CoreShares SP 500 | CoreShares Preference vs. CoreShares Income AMETF |
| JSE vs. British American Tobacco | JSE vs. Anglo American PLC | JSE vs. Anglo American Platinum | JSE vs. ABSA Bank Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |