Correlation Between Anglo Asian and Thor Mining
Can any of the company-specific risk be diversified away by investing in both Anglo Asian and Thor 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 Thor 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 Thor Mining PLC, you can compare the effects of market volatilities on Anglo Asian and Thor 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 Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Asian and Thor Mining.
Diversification Opportunities for Anglo Asian and Thor Mining
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anglo and Thor is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Asian Mining and Thor Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Mining PLC 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 Thor Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Mining PLC has no effect on the direction of Anglo Asian i.e., Anglo Asian and Thor Mining go up and down completely randomly.
Pair Corralation between Anglo Asian and Thor Mining
Assuming the 90 days trading horizon Anglo Asian Mining is expected to generate 1.03 times more return on investment than Thor Mining. However, Anglo Asian is 1.03 times more volatile than Thor Mining PLC. It trades about 0.02 of its potential returns per unit of risk. Thor Mining PLC is currently generating about -0.04 per unit of risk. If you would invest 9,779 in Anglo Asian Mining on September 1, 2024 and sell it today you would earn a total of 371.00 from holding Anglo Asian Mining or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Anglo Asian Mining vs. Thor Mining PLC
Performance |
| Timeline |
| Anglo Asian Mining |
| Thor Mining PLC |
Anglo Asian and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo Asian and Thor Mining
The main advantage of trading using opposite Anglo Asian and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Asian position performs unexpectedly, Thor 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 Thor Mining will offset losses from the drop in Thor 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 |
| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Centamin PLC | Thor Mining vs. Atalaya 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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