Correlation Between ANGLO ASIAN and Brinker International
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and Brinker International 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 Brinker International 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 Brinker International, you can compare the effects of market volatilities on ANGLO ASIAN and Brinker International 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 Brinker International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and Brinker International.
Diversification Opportunities for ANGLO ASIAN and Brinker International
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANGLO and Brinker is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and Brinker International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker International 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 Brinker International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker International has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and Brinker International go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and Brinker International
Assuming the 90 days trading horizon ANGLO ASIAN is expected to generate 6.38 times less return on investment than Brinker International. But when comparing it to its historical volatility, ANGLO ASIAN MINING is 1.59 times less risky than Brinker International. It trades about 0.1 of its potential returns per unit of risk. Brinker International is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 12,800 in Brinker International on November 3, 2024 and sell it today you would earn a total of 4,900 from holding Brinker International or generate 38.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. Brinker International
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| Brinker International |
ANGLO ASIAN and Brinker International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and Brinker International
The main advantage of trading using opposite ANGLO ASIAN and Brinker International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, Brinker International 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 Brinker International will offset losses from the drop in Brinker International's long position.| ANGLO ASIAN vs. PEPTONIC MEDICAL | ANGLO ASIAN vs. ADRIATIC METALS LS 013355 | ANGLO ASIAN vs. ONWARD MEDICAL BV | ANGLO ASIAN vs. Merit Medical Systems |
| Brinker International vs. Media and Games | Brinker International vs. HELIOS TECHS INC | Brinker International vs. VELA TECHNOLPLC LS 0001 | Brinker International vs. FORTRESS BIOTECHPRFA 25 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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