Correlation Between Cembra Money and Panther Metals
Can any of the company-specific risk be diversified away by investing in both Cembra Money and Panther Metals 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 Cembra Money and Panther Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cembra Money Bank and Panther Metals PLC, you can compare the effects of market volatilities on Cembra Money and Panther Metals 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 Cembra Money with a short position of Panther Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and Panther Metals.
Diversification Opportunities for Cembra Money and Panther Metals
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cembra and Panther is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank and Panther Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panther Metals PLC and Cembra Money 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 Cembra Money Bank are associated (or correlated) with Panther Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panther Metals PLC has no effect on the direction of Cembra Money i.e., Cembra Money and Panther Metals go up and down completely randomly.
Pair Corralation between Cembra Money and Panther Metals
Assuming the 90 days trading horizon Cembra Money is expected to generate 8.3 times less return on investment than Panther Metals. But when comparing it to its historical volatility, Cembra Money Bank is 6.35 times less risky than Panther Metals. It trades about 0.14 of its potential returns per unit of risk. Panther Metals PLC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 9,500 in Panther Metals PLC on August 29, 2024 and sell it today you would earn a total of 2,000 from holding Panther Metals PLC or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cembra Money Bank vs. Panther Metals PLC
Performance |
| Timeline |
| Cembra Money Bank |
| Panther Metals PLC |
Cembra Money and Panther Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cembra Money and Panther Metals
The main advantage of trading using opposite Cembra Money and Panther Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money position performs unexpectedly, Panther Metals 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 Panther Metals will offset losses from the drop in Panther Metals' long position.| Cembra Money vs. Lendinvest PLC | Cembra Money vs. Neometals | Cembra Money vs. Coor Service Management | Cembra Money vs. Albion Technology General |
| Panther Metals vs. Atalaya Mining | Panther Metals vs. Anglo Asian Mining | Panther Metals vs. Metals Exploration Plc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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