Correlation Between ANGLO ASIAN and MAG SILVER
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and MAG SILVER 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 MAG SILVER 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 MAG SILVER, you can compare the effects of market volatilities on ANGLO ASIAN and MAG SILVER 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 MAG SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and MAG SILVER.
Diversification Opportunities for ANGLO ASIAN and MAG SILVER
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANGLO and MAG is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and MAG SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG SILVER 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 MAG SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG SILVER has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and MAG SILVER go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and MAG SILVER
Assuming the 90 days trading horizon ANGLO ASIAN is expected to generate 2.53 times less return on investment than MAG SILVER. But when comparing it to its historical volatility, ANGLO ASIAN MINING is 1.2 times less risky than MAG SILVER. It trades about 0.1 of its potential returns per unit of risk. MAG SILVER is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,395 in MAG SILVER on November 4, 2024 and sell it today you would earn a total of 188.00 from holding MAG SILVER or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLO ASIAN MINING vs. MAG SILVER
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| MAG SILVER |
ANGLO ASIAN and MAG SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and MAG SILVER
The main advantage of trading using opposite ANGLO ASIAN and MAG SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, MAG SILVER 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 MAG SILVER will offset losses from the drop in MAG SILVER'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 |
| MAG SILVER vs. Spirent Communications plc | MAG SILVER vs. Chengdu PUTIAN Telecommunications | MAG SILVER vs. ITALIAN WINE BRANDS | MAG SILVER vs. Ross Stores |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| 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 | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |