Correlation Between Thungela Resources and Centaur Bci
Specify exactly 2 symbols:
By analyzing existing cross correlation between Thungela Resources Limited and Centaur Bci Balanced, you can compare the effects of market volatilities on Thungela Resources 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 Thungela Resources with a short position of Centaur Bci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thungela Resources and Centaur Bci.
Diversification Opportunities for Thungela Resources and Centaur Bci
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thungela and Centaur is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Thungela Resources Limited 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 Thungela Resources 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 Thungela Resources Limited 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 Thungela Resources i.e., Thungela Resources and Centaur Bci go up and down completely randomly.
Pair Corralation between Thungela Resources and Centaur Bci
Assuming the 90 days trading horizon Thungela Resources Limited is expected to generate 6.03 times more return on investment than Centaur Bci. However, Thungela Resources is 6.03 times more volatile than Centaur Bci Balanced. It trades about 0.25 of its potential returns per unit of risk. Centaur Bci Balanced is currently generating about 0.0 per unit of risk. If you would invest 1,093,500 in Thungela Resources Limited on August 28, 2024 and sell it today you would earn a total of 263,100 from holding Thungela Resources Limited or generate 24.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Thungela Resources Limited vs. Centaur Bci Balanced
Performance |
| Timeline |
| Thungela Resources |
| Centaur Bci Balanced |
Thungela Resources and Centaur Bci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thungela Resources and Centaur Bci
The main advantage of trading using opposite Thungela Resources and Centaur Bci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thungela Resources 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.| Thungela Resources vs. Centaur Bci Balanced | Thungela Resources vs. Growthpoint Properties | Thungela Resources vs. Bowler Metcalf | Thungela Resources vs. Shoprite Holdings |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |