Correlation Between ANGLO ASIAN and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and GameStop Corp 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 GameStop Corp 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 GameStop Corp, you can compare the effects of market volatilities on ANGLO ASIAN and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and GameStop Corp.
Diversification Opportunities for ANGLO ASIAN and GameStop Corp
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANGLO and GameStop is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and GameStop Corp go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and GameStop Corp
Assuming the 90 days trading horizon ANGLO ASIAN MINING is expected to generate 0.71 times more return on investment than GameStop Corp. However, ANGLO ASIAN MINING is 1.4 times less risky than GameStop Corp. It trades about 0.1 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.06 per unit of risk. If you would invest 89.00 in ANGLO ASIAN MINING on October 26, 2024 and sell it today you would earn a total of 34.00 from holding ANGLO ASIAN MINING or generate 38.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. GameStop Corp
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| GameStop Corp |
ANGLO ASIAN and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and GameStop Corp
The main advantage of trading using opposite ANGLO ASIAN and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp's long position.| ANGLO ASIAN vs. Apple Inc | ANGLO ASIAN vs. Apple Inc | ANGLO ASIAN vs. Apple Inc | ANGLO ASIAN vs. Apple Inc |
| GameStop Corp vs. ANGLO ASIAN MINING | GameStop Corp vs. Eurasia Mining Plc | GameStop Corp vs. De Grey Mining | GameStop Corp vs. STGEORGE MINING LTD |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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