Correlation Between Allan Gray and Investec Limited
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By analyzing existing cross correlation between Allan Gray Equity and Investec Limited NON, you can compare the effects of market volatilities on Allan Gray and Investec Limited 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 Allan Gray with a short position of Investec Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allan Gray and Investec Limited.
Diversification Opportunities for Allan Gray and Investec Limited
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allan and Investec is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Allan Gray Equity and Investec Limited NON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Limited NON and Allan Gray 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 Allan Gray Equity are associated (or correlated) with Investec Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Limited NON has no effect on the direction of Allan Gray i.e., Allan Gray and Investec Limited go up and down completely randomly.
Pair Corralation between Allan Gray and Investec Limited
Assuming the 90 days trading horizon Allan Gray Equity is expected to generate 0.35 times more return on investment than Investec Limited. However, Allan Gray Equity is 2.85 times less risky than Investec Limited. It trades about 0.15 of its potential returns per unit of risk. Investec Limited NON is currently generating about 0.05 per unit of risk. If you would invest 58,567 in Allan Gray Equity on September 12, 2024 and sell it today you would earn a total of 2,554 from holding Allan Gray Equity or generate 4.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.83% |
Values | Daily Returns |
Allan Gray Equity vs. Investec Limited NON
Performance |
Timeline |
Allan Gray Equity |
Investec Limited NON |
Allan Gray and Investec Limited Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allan Gray and Investec Limited
The main advantage of trading using opposite Allan Gray and Investec Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allan Gray position performs unexpectedly, Investec Limited 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 Investec Limited will offset losses from the drop in Investec Limited's long position.Allan Gray vs. Allan Gray orbis Global | Allan Gray vs. Allan Gray | Allan Gray vs. 4d Bci Moderate | Allan Gray vs. Coronation Global Optimum |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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