Correlation Between CoreShares TotalWldStock and Satrix Swix
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By analyzing existing cross correlation between CoreShares TotalWldStock ETF and Satrix Swix Top, you can compare the effects of market volatilities on CoreShares TotalWldStock and Satrix Swix 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 CoreShares TotalWldStock with a short position of Satrix Swix. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreShares TotalWldStock and Satrix Swix.
Diversification Opportunities for CoreShares TotalWldStock and Satrix Swix
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CoreShares and Satrix is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding CoreShares TotalWldStock ETF and Satrix Swix Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satrix Swix Top and CoreShares TotalWldStock 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 CoreShares TotalWldStock ETF are associated (or correlated) with Satrix Swix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satrix Swix Top has no effect on the direction of CoreShares TotalWldStock i.e., CoreShares TotalWldStock and Satrix Swix go up and down completely randomly.
Pair Corralation between CoreShares TotalWldStock and Satrix Swix
Assuming the 90 days trading horizon CoreShares TotalWldStock ETF is expected to generate 0.97 times more return on investment than Satrix Swix. However, CoreShares TotalWldStock ETF is 1.03 times less risky than Satrix Swix. It trades about 0.09 of its potential returns per unit of risk. Satrix Swix Top is currently generating about 0.02 per unit of risk. If you would invest 106,498 in CoreShares TotalWldStock ETF on September 24, 2024 and sell it today you would earn a total of 48,302 from holding CoreShares TotalWldStock ETF or generate 45.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CoreShares TotalWldStock ETF vs. Satrix Swix Top
Performance |
Timeline |
CoreShares TotalWldStock |
Satrix Swix Top |
CoreShares TotalWldStock and Satrix Swix Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CoreShares TotalWldStock and Satrix Swix
The main advantage of trading using opposite CoreShares TotalWldStock and Satrix Swix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreShares TotalWldStock position performs unexpectedly, Satrix Swix 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 Satrix Swix will offset losses from the drop in Satrix Swix's long position.CoreShares TotalWldStock vs. Satrix 40 ETF | CoreShares TotalWldStock vs. Indexco Limited | CoreShares TotalWldStock vs. Coreshares Index Tracker | CoreShares TotalWldStock vs. Satrix Swix Top |
Satrix Swix vs. CoreShares TotalWldStock ETF | Satrix Swix vs. Satrix 40 ETF | Satrix Swix vs. Indexco Limited | Satrix Swix vs. Coreshares Index Tracker |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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