Correlation Between Indexco Limited and Coronation Global
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By analyzing existing cross correlation between Indexco Limited and Coronation Global Equity, you can compare the effects of market volatilities on Indexco Limited 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 Indexco Limited with a short position of Coronation Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indexco Limited and Coronation Global.
Diversification Opportunities for Indexco Limited and Coronation Global
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Indexco and Coronation is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Indexco Limited 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 Indexco Limited 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 Indexco Limited 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 Indexco Limited i.e., Indexco Limited and Coronation Global go up and down completely randomly.
Pair Corralation between Indexco Limited and Coronation Global
Assuming the 90 days trading horizon Indexco Limited is expected to generate 4.19 times less return on investment than Coronation Global. But when comparing it to its historical volatility, Indexco Limited is 1.21 times less risky than Coronation Global. It trades about 0.02 of its potential returns per unit of risk. Coronation Global Equity is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Coronation Global Equity on August 31, 2024 and sell it today you would earn a total of 84.00 from holding Coronation Global Equity or generate 48.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Indexco Limited vs. Coronation Global Equity
Performance |
| Timeline |
| Indexco Limited |
| Coronation Global Equity |
Indexco Limited and Coronation Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indexco Limited and Coronation Global
The main advantage of trading using opposite Indexco Limited and Coronation Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indexco Limited 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.| Indexco Limited vs. FNB ETN on | Indexco Limited vs. Satrix MSCI World | Indexco Limited vs. Satrix Swix Top | Indexco Limited vs. Satrix 40 ETF |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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