Correlation Between Albion Technology and Mkango Resources
Can any of the company-specific risk be diversified away by investing in both Albion Technology and Mkango Resources 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 Albion Technology and Mkango Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albion Technology General and Mkango Resources, you can compare the effects of market volatilities on Albion Technology and Mkango Resources 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 Albion Technology with a short position of Mkango Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albion Technology and Mkango Resources.
Diversification Opportunities for Albion Technology and Mkango Resources
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Albion and Mkango is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Albion Technology General and Mkango Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mkango Resources and Albion Technology 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 Albion Technology General are associated (or correlated) with Mkango Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mkango Resources has no effect on the direction of Albion Technology i.e., Albion Technology and Mkango Resources go up and down completely randomly.
Pair Corralation between Albion Technology and Mkango Resources
Assuming the 90 days trading horizon Albion Technology General is expected to generate 0.15 times more return on investment than Mkango Resources. However, Albion Technology General is 6.49 times less risky than Mkango Resources. It trades about 0.02 of its potential returns per unit of risk. Mkango Resources is currently generating about 0.0 per unit of risk. If you would invest 6,528 in Albion Technology General on September 13, 2024 and sell it today you would earn a total of 322.00 from holding Albion Technology General or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Albion Technology General vs. Mkango Resources
Performance |
| Timeline |
| Albion Technology General |
| Mkango Resources |
Albion Technology and Mkango Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albion Technology and Mkango Resources
The main advantage of trading using opposite Albion Technology and Mkango Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albion Technology position performs unexpectedly, Mkango Resources 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 Mkango Resources will offset losses from the drop in Mkango Resources' long position.| Albion Technology vs. Samsung Electronics Co | Albion Technology vs. Samsung Electronics Co | Albion Technology vs. Hyundai Motor | Albion Technology vs. Toyota Motor Corp |
| Mkango Resources vs. MediaZest plc | Mkango Resources vs. Cognizant Technology Solutions | Mkango Resources vs. Vitec Software Group | Mkango Resources vs. Sunny Optical Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |