Correlation Between ANGLO ASIAN and De Grey
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and De Grey 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 De Grey 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 De Grey Mining, you can compare the effects of market volatilities on ANGLO ASIAN and De Grey 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 De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and De Grey.
Diversification Opportunities for ANGLO ASIAN and De Grey
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANGLO and DGD is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining 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 De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and De Grey go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and De Grey
Assuming the 90 days trading horizon ANGLO ASIAN is expected to generate 2.06 times less return on investment than De Grey. In addition to that, ANGLO ASIAN is 1.29 times more volatile than De Grey Mining. It trades about 0.1 of its total potential returns per unit of risk. De Grey Mining is currently generating about 0.26 per unit of volatility. If you would invest 107.00 in De Grey Mining on November 4, 2024 and sell it today you would earn a total of 12.00 from holding De Grey Mining or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. De Grey Mining
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| De Grey Mining |
ANGLO ASIAN and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and De Grey
The main advantage of trading using opposite ANGLO ASIAN and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| ANGLO ASIAN vs. United Natural Foods | ANGLO ASIAN vs. PROSIEBENSAT1 MEDIADR4 | ANGLO ASIAN vs. NH Foods | ANGLO ASIAN vs. Hollywood Bowl Group |
| De Grey vs. International Consolidated Airlines | De Grey vs. PLAYSTUDIOS A DL 0001 | De Grey vs. Southwest Airlines Co | De Grey vs. Gol Intelligent Airlines |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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