Correlation Between Accent Resources and Ichor Coal
Can any of the company-specific risk be diversified away by investing in both Accent Resources and Ichor Coal 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 Accent Resources and Ichor Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accent Resources NL and Ichor Coal NV, you can compare the effects of market volatilities on Accent Resources and Ichor Coal 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 Accent Resources with a short position of Ichor Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accent Resources and Ichor Coal.
Diversification Opportunities for Accent Resources and Ichor Coal
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accent and Ichor is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Accent Resources NL and Ichor Coal NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichor Coal NV and Accent Resources 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 Accent Resources NL are associated (or correlated) with Ichor Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichor Coal NV has no effect on the direction of Accent Resources i.e., Accent Resources and Ichor Coal go up and down completely randomly.
Pair Corralation between Accent Resources and Ichor Coal
Assuming the 90 days horizon Accent Resources NL is expected to generate 38.96 times more return on investment than Ichor Coal. However, Accent Resources is 38.96 times more volatile than Ichor Coal NV. It trades about 0.14 of its potential returns per unit of risk. Ichor Coal NV is currently generating about -0.16 per unit of risk. If you would invest 0.25 in Accent Resources NL on September 3, 2024 and sell it today you would earn a total of 1.50 from holding Accent Resources NL or generate 600.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Accent Resources NL vs. Ichor Coal NV
Performance |
| Timeline |
| Accent Resources |
| Ichor Coal NV |
Accent Resources and Ichor Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accent Resources and Ichor Coal
The main advantage of trading using opposite Accent Resources and Ichor Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accent Resources position performs unexpectedly, Ichor Coal 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 Ichor Coal will offset losses from the drop in Ichor Coal's long position.| Accent Resources vs. PRECISION DRILLING P | Accent Resources vs. BANKINTER ADR 2007 | Accent Resources vs. PSI Software AG | Accent Resources vs. OAKTRSPECLENDNEW |
| Ichor Coal vs. INTER CARS SA | Ichor Coal vs. CarsalesCom | Ichor Coal vs. MagnaChip Semiconductor Corp | Ichor Coal vs. AECOM TECHNOLOGY |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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