Correlation Between Anglo American and Calissio Resources
Can any of the company-specific risk be diversified away by investing in both Anglo American and Calissio 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 Anglo American and Calissio Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo American plc and Calissio Resources Group, you can compare the effects of market volatilities on Anglo American and Calissio 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 Anglo American with a short position of Calissio Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and Calissio Resources.
Diversification Opportunities for Anglo American and Calissio Resources
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anglo and Calissio is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American plc and Calissio Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calissio Resources and Anglo American 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 American plc are associated (or correlated) with Calissio Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calissio Resources has no effect on the direction of Anglo American i.e., Anglo American and Calissio Resources go up and down completely randomly.
Pair Corralation between Anglo American and Calissio Resources
Assuming the 90 days horizon Anglo American is expected to generate 397.28 times less return on investment than Calissio Resources. But when comparing it to its historical volatility, Anglo American plc is 32.76 times less risky than Calissio Resources. It trades about 0.01 of its potential returns per unit of risk. Calissio Resources Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Calissio Resources Group on August 30, 2024 and sell it today you would lose (0.03) from holding Calissio Resources Group or give up 42.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.05% |
| Values | Daily Returns |
Anglo American plc vs. Calissio Resources Group
Performance |
| Timeline |
| Anglo American plc |
| Calissio Resources |
Anglo American and Calissio Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo American and Calissio Resources
The main advantage of trading using opposite Anglo American and Calissio Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo American position performs unexpectedly, Calissio 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 Calissio Resources will offset losses from the drop in Calissio Resources' long position.| Anglo American vs. Glencore PLC ADR | Anglo American vs. Fortescue Metals Group | Anglo American vs. South32 Limited | Anglo American vs. South32 ADR |
| Calissio Resources vs. Rockridge Resources | Calissio Resources vs. Ameriwest Lithium | Calissio Resources vs. Osisko Metals Incorporated | Calissio Resources vs. Volt Lithium Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |