Correlation Between Anglo Asian and AfriTin Mining
Can any of the company-specific risk be diversified away by investing in both Anglo Asian and AfriTin Mining 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 AfriTin Mining 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 AfriTin Mining, you can compare the effects of market volatilities on Anglo Asian and AfriTin Mining 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 AfriTin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Asian and AfriTin Mining.
Diversification Opportunities for Anglo Asian and AfriTin Mining
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anglo and AfriTin is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Asian Mining and AfriTin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfriTin Mining 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 AfriTin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfriTin Mining has no effect on the direction of Anglo Asian i.e., Anglo Asian and AfriTin Mining go up and down completely randomly.
Pair Corralation between Anglo Asian and AfriTin Mining
Assuming the 90 days trading horizon Anglo Asian Mining is expected to under-perform the AfriTin Mining. But the stock apears to be less risky and, when comparing its historical volatility, Anglo Asian Mining is 2.15 times less risky than AfriTin Mining. The stock trades about -0.15 of its potential returns per unit of risk. The AfriTin Mining is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 298.00 in AfriTin Mining on September 1, 2024 and sell it today you would lose (23.00) from holding AfriTin Mining or give up 7.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Anglo Asian Mining vs. AfriTin Mining
Performance |
| Timeline |
| Anglo Asian Mining |
| AfriTin Mining |
Anglo Asian and AfriTin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo Asian and AfriTin Mining
The main advantage of trading using opposite Anglo Asian and AfriTin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Asian position performs unexpectedly, AfriTin Mining 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 AfriTin Mining will offset losses from the drop in AfriTin Mining's long position.| Anglo Asian vs. Zanaga Iron Ore | Anglo Asian vs. Roadside Real Estate | Anglo Asian vs. Seche Environnement SA | Anglo Asian vs. EVS Broadcast Equipment |
| AfriTin Mining vs. FC Investment Trust | AfriTin Mining vs. Herald Investment Trust | AfriTin Mining vs. Morgan Advanced Materials | AfriTin Mining vs. Extra Space Storage |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |