Correlation Between NewFunds Low and Allan Gray
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By analyzing existing cross correlation between NewFunds Low Volatility and Allan Gray orbis Global, you can compare the effects of market volatilities on NewFunds Low and Allan Gray 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 NewFunds Low with a short position of Allan Gray. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFunds Low and Allan Gray.
Diversification Opportunities for NewFunds Low and Allan Gray
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NewFunds and Allan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding NewFunds Low Volatility and Allan Gray orbis Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allan Gray orbis and NewFunds Low 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 NewFunds Low Volatility are associated (or correlated) with Allan Gray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allan Gray orbis has no effect on the direction of NewFunds Low i.e., NewFunds Low and Allan Gray go up and down completely randomly.
Pair Corralation between NewFunds Low and Allan Gray
Assuming the 90 days trading horizon NewFunds Low Volatility is expected to generate 0.59 times more return on investment than Allan Gray. However, NewFunds Low Volatility is 1.7 times less risky than Allan Gray. It trades about 0.25 of its potential returns per unit of risk. Allan Gray orbis Global is currently generating about -0.01 per unit of risk. If you would invest 123,700 in NewFunds Low Volatility on September 12, 2024 and sell it today you would earn a total of 3,200 from holding NewFunds Low Volatility or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFunds Low Volatility vs. Allan Gray orbis Global
Performance |
| Timeline |
| NewFunds Low Volatility |
| Allan Gray orbis |
NewFunds Low and Allan Gray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFunds Low and Allan Gray
The main advantage of trading using opposite NewFunds Low and Allan Gray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFunds Low position performs unexpectedly, Allan Gray 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 Allan Gray will offset losses from the drop in Allan Gray's long position.| NewFunds Low vs. NewFunds GOVI Exchange | NewFunds Low vs. NewFunds Shariah Top | NewFunds Low vs. NewFunds MAPPS Growth | NewFunds Low vs. NewFunds TRACI 3 |
| Allan Gray vs. NewFunds Low Volatility | Allan Gray vs. Sasol Ltd Bee | Allan Gray vs. Centaur Bci Balanced | Allan Gray vs. Coronation Global Equity |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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