Correlation Between Anglo Asian and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both Anglo Asian and Prosiebensat 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 Prosiebensat 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 Prosiebensat 1 Media, you can compare the effects of market volatilities on Anglo Asian and Prosiebensat 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 Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Asian and Prosiebensat.
Diversification Opportunities for Anglo Asian and Prosiebensat
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anglo and Prosiebensat is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Asian Mining and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media 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 Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of Anglo Asian i.e., Anglo Asian and Prosiebensat go up and down completely randomly.
Pair Corralation between Anglo Asian and Prosiebensat
Assuming the 90 days trading horizon Anglo Asian Mining is expected to generate 1.0 times more return on investment than Prosiebensat. However, Anglo Asian Mining is 1.0 times less risky than Prosiebensat. It trades about -0.08 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about -0.26 per unit of risk. If you would invest 10,450 in Anglo Asian Mining on October 9, 2024 and sell it today you would lose (300.00) from holding Anglo Asian Mining or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo Asian Mining vs. Prosiebensat 1 Media
Performance |
| Timeline |
| Anglo Asian Mining |
| Prosiebensat 1 Media |
Anglo Asian and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo Asian and Prosiebensat
The main advantage of trading using opposite Anglo Asian and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Asian position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| Anglo Asian vs. URU Metals | Anglo Asian vs. Porvair plc | Anglo Asian vs. Impax Asset Management | Anglo Asian vs. Coor Service Management |
| Prosiebensat vs. European Metals Holdings | Prosiebensat vs. Monks Investment Trust | Prosiebensat vs. Herald Investment Trust | Prosiebensat vs. New Residential Investment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |