Correlation Between Anglo Asian and Liechtensteinische
Can any of the company-specific risk be diversified away by investing in both Anglo Asian and Liechtensteinische 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 Liechtensteinische 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 Liechtensteinische Landesbank AG, you can compare the effects of market volatilities on Anglo Asian and Liechtensteinische 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 Liechtensteinische. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Asian and Liechtensteinische.
Diversification Opportunities for Anglo Asian and Liechtensteinische
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anglo and Liechtensteinische is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Asian Mining and Liechtensteinische Landesbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liechtensteinische 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 Liechtensteinische. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liechtensteinische has no effect on the direction of Anglo Asian i.e., Anglo Asian and Liechtensteinische go up and down completely randomly.
Pair Corralation between Anglo Asian and Liechtensteinische
Assuming the 90 days trading horizon Anglo Asian Mining is expected to under-perform the Liechtensteinische. In addition to that, Anglo Asian is 3.37 times more volatile than Liechtensteinische Landesbank AG. It trades about -0.05 of its total potential returns per unit of risk. Liechtensteinische Landesbank AG is currently generating about 0.23 per unit of volatility. If you would invest 7,030 in Liechtensteinische Landesbank AG on October 23, 2024 and sell it today you would earn a total of 220.00 from holding Liechtensteinische Landesbank AG or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo Asian Mining vs. Liechtensteinische Landesbank
Performance |
| Timeline |
| Anglo Asian Mining |
| Liechtensteinische |
Anglo Asian and Liechtensteinische Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo Asian and Liechtensteinische
The main advantage of trading using opposite Anglo Asian and Liechtensteinische positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Asian position performs unexpectedly, Liechtensteinische 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 Liechtensteinische will offset losses from the drop in Liechtensteinische's long position.| Anglo Asian vs. Associated British Foods | Anglo Asian vs. Abingdon Health Plc | Anglo Asian vs. Planet Fitness Cl | Anglo Asian vs. Inspiration Healthcare Group |
| Liechtensteinische vs. Xeros Technology Group | Liechtensteinische vs. International Biotechnology Trust | Liechtensteinische vs. Anglo Asian Mining | Liechtensteinische vs. Coeur 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 Stocks Directory module to find actively traded stocks across global markets.
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