Correlation Between ANGLO ASIAN and Alfen NV
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and Alfen NV 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 ANGLO ASIAN and Alfen NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLO ASIAN MINING and Alfen NV, you can compare the effects of market volatilities on ANGLO ASIAN and Alfen NV 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 ANGLO ASIAN with a short position of Alfen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and Alfen NV.
Diversification Opportunities for ANGLO ASIAN and Alfen NV
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANGLO and Alfen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and Alfen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfen NV and ANGLO ASIAN 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 ANGLO ASIAN MINING are associated (or correlated) with Alfen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfen NV has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and Alfen NV go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and Alfen NV
Assuming the 90 days trading horizon ANGLO ASIAN is expected to generate 1.25 times less return on investment than Alfen NV. But when comparing it to its historical volatility, ANGLO ASIAN MINING is 1.42 times less risky than Alfen NV. It trades about 0.13 of its potential returns per unit of risk. Alfen NV is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,335 in Alfen NV on November 6, 2024 and sell it today you would earn a total of 104.00 from holding Alfen NV or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. Alfen NV
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| Alfen NV |
ANGLO ASIAN and Alfen NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and Alfen NV
The main advantage of trading using opposite ANGLO ASIAN and Alfen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, Alfen NV 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 Alfen NV will offset losses from the drop in Alfen NV's long position.| ANGLO ASIAN vs. Air Transport Services | ANGLO ASIAN vs. BROADPEAK SA EO | ANGLO ASIAN vs. Sumitomo Rubber Industries | ANGLO ASIAN vs. Broadridge Financial Solutions |
| Alfen NV vs. United Natural Foods | Alfen NV vs. Elmos Semiconductor SE | Alfen NV vs. Lattice Semiconductor | Alfen NV vs. Moneysupermarket Group 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |