Correlation Between Trematon Capital and Nampak
Can any of the company-specific risk be diversified away by investing in both Trematon Capital and Nampak at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Trematon Capital and Nampak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trematon Capital Investments and Nampak, you can compare the effects of market volatilities on Trematon Capital and Nampak 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 Trematon Capital with a short position of Nampak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trematon Capital and Nampak.
Diversification Opportunities for Trematon Capital and Nampak
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Trematon and Nampak is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Trematon Capital Investments and Nampak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nampak and Trematon Capital 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 Trematon Capital Investments are associated (or correlated) with Nampak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nampak has no effect on the direction of Trematon Capital i.e., Trematon Capital and Nampak go up and down completely randomly.
Pair Corralation between Trematon Capital and Nampak
Assuming the 90 days trading horizon Trematon Capital is expected to generate 7.02 times less return on investment than Nampak. In addition to that, Trematon Capital is 1.8 times more volatile than Nampak. It trades about 0.0 of its total potential returns per unit of risk. Nampak is currently generating about 0.06 per unit of volatility. If you would invest 4,050,000 in Nampak on September 2, 2024 and sell it today you would earn a total of 313,200 from holding Nampak or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Trematon Capital Investments vs. Nampak
Performance |
| Timeline |
| Trematon Capital Inv |
| Nampak |
Trematon Capital and Nampak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trematon Capital and Nampak
The main advantage of trading using opposite Trematon Capital and Nampak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trematon Capital position performs unexpectedly, Nampak 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 Nampak will offset losses from the drop in Nampak's long position.| Trematon Capital vs. Afine Investments | Trematon Capital vs. We Buy Cars | Trematon Capital vs. Datatec | Trematon Capital vs. Astral Foods |
| Nampak vs. Safari Investments RSA | Nampak vs. Blue Label Telecoms | Nampak vs. Trematon Capital Investments | Nampak vs. HomeChoice Investments |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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