Correlation Between ANGLO ASIAN and Cass Information
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and Cass Information 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 Cass Information 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 Cass Information Systems, you can compare the effects of market volatilities on ANGLO ASIAN and Cass Information 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 Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and Cass Information.
Diversification Opportunities for ANGLO ASIAN and Cass Information
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANGLO and Cass is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and Cass Information go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and Cass Information
Assuming the 90 days trading horizon ANGLO ASIAN MINING is expected to generate 1.6 times more return on investment than Cass Information. However, ANGLO ASIAN is 1.6 times more volatile than Cass Information Systems. It trades about 0.08 of its potential returns per unit of risk. Cass Information Systems is currently generating about 0.06 per unit of risk. If you would invest 104.00 in ANGLO ASIAN MINING on November 7, 2024 and sell it today you would earn a total of 26.00 from holding ANGLO ASIAN MINING or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. Cass Information Systems
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| Cass Information Systems |
ANGLO ASIAN and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and Cass Information
The main advantage of trading using opposite ANGLO ASIAN and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information'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 |
| Cass Information vs. INFORMATION SVC GRP | Cass Information vs. Ribbon Communications | Cass Information vs. Highlight Communications AG | Cass Information vs. Pure Storage |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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