Correlation Between Investec Global and Cref Money
Can any of the company-specific risk be diversified away by investing in both Investec Global and Cref Money 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 Investec Global and Cref Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Global Franchise and Cref Money Market, you can compare the effects of market volatilities on Investec Global and Cref Money 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 Investec Global with a short position of Cref Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Global and Cref Money.
Diversification Opportunities for Investec Global and Cref Money
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Investec and Cref is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Investec Global Franchise and Cref Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market and Investec Global 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 Investec Global Franchise are associated (or correlated) with Cref Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Investec Global i.e., Investec Global and Cref Money go up and down completely randomly.
Pair Corralation between Investec Global and Cref Money
Assuming the 90 days horizon Investec Global Franchise is expected to generate 36.04 times more return on investment than Cref Money. However, Investec Global is 36.04 times more volatile than Cref Money Market. It trades about 0.23 of its potential returns per unit of risk. Cref Money Market is currently generating about 0.98 per unit of risk. If you would invest 1,815 in Investec Global Franchise on April 24, 2025 and sell it today you would earn a total of 158.00 from holding Investec Global Franchise or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Global Franchise vs. Cref Money Market
Performance |
| Timeline |
| Investec Global Franchise |
| Cref Money Market |
Investec Global and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Global and Cref Money
The main advantage of trading using opposite Investec Global and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Global position performs unexpectedly, Cref Money 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 Cref Money will offset losses from the drop in Cref Money's long position.| Investec Global vs. American Century Etf | Investec Global vs. Lsv Small Cap | Investec Global vs. Queens Road Small | Investec Global vs. Goldman Sachs Small |
| Cref Money vs. Angel Oak Financial | Cref Money vs. Icon Financial Fund | Cref Money vs. Goldman Sachs Financial | Cref Money vs. Mesirow Financial Small |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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