Correlation Between SLM Corp and Coronation Global
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By analyzing existing cross correlation between Sanlam and Coronation Global Equity, you can compare the effects of market volatilities on SLM Corp and Coronation Global 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 SLM Corp with a short position of Coronation Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLM Corp and Coronation Global.
Diversification Opportunities for SLM Corp and Coronation Global
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SLM and Coronation is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sanlam and Coronation Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Global Equity and SLM Corp 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 Sanlam are associated (or correlated) with Coronation Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Global Equity has no effect on the direction of SLM Corp i.e., SLM Corp and Coronation Global go up and down completely randomly.
Pair Corralation between SLM Corp and Coronation Global
Assuming the 90 days trading horizon Sanlam is expected to generate 1.48 times more return on investment than Coronation Global. However, SLM Corp is 1.48 times more volatile than Coronation Global Equity. It trades about 0.1 of its potential returns per unit of risk. Coronation Global Equity is currently generating about 0.09 per unit of risk. If you would invest 637,570 in Sanlam on September 3, 2024 and sell it today you would earn a total of 265,530 from holding Sanlam or generate 41.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanlam vs. Coronation Global Equity
Performance |
| Timeline |
| SLM Corp |
| Coronation Global Equity |
SLM Corp and Coronation Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLM Corp and Coronation Global
The main advantage of trading using opposite SLM Corp and Coronation Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLM Corp position performs unexpectedly, Coronation Global 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 Coronation Global will offset losses from the drop in Coronation Global's long position.| SLM Corp vs. Blue Label Telecoms | SLM Corp vs. Standard Bank Group | SLM Corp vs. Lesaka Technologies | SLM Corp vs. Life Healthcare |
| Coronation Global vs. Coronation Global Optimum | Coronation Global vs. Coronation Balanced Plus | Coronation Global vs. Coronation Industrial | Coronation Global vs. Coronation Capital Plus |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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