Correlation Between Angold Resources and Cambridge Capital
Can any of the company-specific risk be diversified away by investing in both Angold Resources and Cambridge Capital 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 Angold Resources and Cambridge Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angold Resources and Cambridge Capital Holdings, you can compare the effects of market volatilities on Angold Resources and Cambridge Capital 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 Angold Resources with a short position of Cambridge Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angold Resources and Cambridge Capital.
Diversification Opportunities for Angold Resources and Cambridge Capital
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Angold and Cambridge is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Angold Resources and Cambridge Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Capital and Angold Resources 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 Angold Resources are associated (or correlated) with Cambridge Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Capital has no effect on the direction of Angold Resources i.e., Angold Resources and Cambridge Capital go up and down completely randomly.
Pair Corralation between Angold Resources and Cambridge Capital
If you would invest 6.00 in Angold Resources on August 30, 2024 and sell it today you would lose (2.80) from holding Angold Resources or give up 46.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Angold Resources vs. Cambridge Capital Holdings
Performance |
| Timeline |
| Angold Resources |
| Cambridge Capital |
Angold Resources and Cambridge Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angold Resources and Cambridge Capital
The main advantage of trading using opposite Angold Resources and Cambridge Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angold Resources position performs unexpectedly, Cambridge Capital 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 Cambridge Capital will offset losses from the drop in Cambridge Capital's long position.| Angold Resources vs. Minnova Corp | Angold Resources vs. Blue Star Gold | Angold Resources vs. Advance Gold Corp | Angold Resources vs. Angkor Resources Corp |
| Cambridge Capital vs. International Tower Hill | Cambridge Capital vs. Allegiant Gold | Cambridge Capital vs. Austin Gold Corp | Cambridge Capital vs. Angold Resources |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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