Correlation Between Advance Gold and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Advance Gold and Angkor Resources 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 Advance Gold and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advance Gold Corp and Angkor Resources Corp, you can compare the effects of market volatilities on Advance Gold and Angkor Resources 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 Advance Gold with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance Gold and Angkor Resources.
Diversification Opportunities for Advance Gold and Angkor Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advance and Angkor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advance Gold Corp and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp and Advance Gold 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 Advance Gold Corp are associated (or correlated) with Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Advance Gold i.e., Advance Gold and Angkor Resources go up and down completely randomly.
Pair Corralation between Advance Gold and Angkor Resources
If you would invest 0.69 in Advance Gold Corp on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Advance Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advance Gold Corp vs. Angkor Resources Corp
Performance |
| Timeline |
| Advance Gold Corp |
| Angkor Resources Corp |
Advance Gold and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advance Gold and Angkor Resources
The main advantage of trading using opposite Advance Gold and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Gold position performs unexpectedly, Angkor Resources 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Advance Gold vs. Aurion Resources | Advance Gold vs. Liberty Gold Corp | Advance Gold vs. Rio2 Limited | Advance Gold vs. Orezone Gold Corp |
| Angkor Resources vs. Ascendant Resources | Angkor Resources vs. Cantex Mine Development | Angkor Resources vs. Amarc Resources | Angkor Resources vs. Sterling Metals Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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