Correlation Between Actinogen Medical and Peel Mining
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Peel 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 Actinogen Medical and Peel Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Peel Mining, you can compare the effects of market volatilities on Actinogen Medical and Peel 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 Actinogen Medical with a short position of Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Peel Mining.
Diversification Opportunities for Actinogen Medical and Peel Mining
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Actinogen and Peel is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Peel Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Peel Mining go up and down completely randomly.
Pair Corralation between Actinogen Medical and Peel Mining
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 1.48 times more return on investment than Peel Mining. However, Actinogen Medical is 1.48 times more volatile than Peel Mining. It trades about 0.28 of its potential returns per unit of risk. Peel Mining is currently generating about -0.09 per unit of risk. If you would invest 2.70 in Actinogen Medical on November 27, 2024 and sell it today you would earn a total of 1.00 from holding Actinogen Medical or generate 37.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Peel Mining
Performance |
| Timeline |
| Actinogen Medical |
| Peel Mining |
Actinogen Medical and Peel Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Peel Mining
The main advantage of trading using opposite Actinogen Medical and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Peel 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 Peel Mining will offset losses from the drop in Peel Mining's long position.| Actinogen Medical vs. Sonic Healthcare | Actinogen Medical vs. Bisalloy Steel Group | Actinogen Medical vs. Global Health | Actinogen Medical vs. Tombador Iron |
| Peel Mining vs. Catalyst Metals | Peel Mining vs. Evolution Mining | Peel Mining vs. Group 6 Metals | Peel Mining vs. Perseus 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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