Correlation Between ANGLO ASIAN and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and Acadia Realty 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 Acadia Realty 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 Acadia Realty Trust, you can compare the effects of market volatilities on ANGLO ASIAN and Acadia Realty 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 Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and Acadia Realty.
Diversification Opportunities for ANGLO ASIAN and Acadia Realty
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANGLO and Acadia is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust 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 Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and Acadia Realty go up and down completely randomly.
Pair Corralation between ANGLO ASIAN and Acadia Realty
Assuming the 90 days trading horizon ANGLO ASIAN MINING is expected to generate 2.29 times more return on investment than Acadia Realty. However, ANGLO ASIAN is 2.29 times more volatile than Acadia Realty Trust. It trades about 0.09 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.09 per unit of risk. If you would invest 105.00 in ANGLO ASIAN MINING on October 18, 2024 and sell it today you would earn a total of 20.00 from holding ANGLO ASIAN MINING or generate 19.05% 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. Acadia Realty Trust
Performance |
| Timeline |
| ANGLO ASIAN MINING |
| Acadia Realty Trust |
ANGLO ASIAN and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLO ASIAN and Acadia Realty
The main advantage of trading using opposite ANGLO ASIAN and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| ANGLO ASIAN vs. RYANAIR HLDGS ADR | ANGLO ASIAN vs. Coffee Holding Co | ANGLO ASIAN vs. VARIOUS EATERIES LS | ANGLO ASIAN vs. Darden Restaurants |
| Acadia Realty vs. SAN MIGUEL BREWERY | Acadia Realty vs. BOSTON BEER A | Acadia Realty vs. Mitsui Chemicals | Acadia Realty vs. ANGLO ASIAN MINING |
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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