Correlation Between Affiliated Resources and Minor International
Can any of the company-specific risk be diversified away by investing in both Affiliated Resources and Minor International 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 Affiliated Resources and Minor International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affiliated Resources Corp and Minor International PCL, you can compare the effects of market volatilities on Affiliated Resources and Minor International 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 Affiliated Resources with a short position of Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Resources and Minor International.
Diversification Opportunities for Affiliated Resources and Minor International
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Affiliated and Minor is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Resources Corp and Minor International PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International PCL and Affiliated Resources 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 Affiliated Resources Corp are associated (or correlated) with Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International PCL has no effect on the direction of Affiliated Resources i.e., Affiliated Resources and Minor International go up and down completely randomly.
Pair Corralation between Affiliated Resources and Minor International
If you would invest 2,177 in Minor International PCL on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Minor International PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Affiliated Resources Corp vs. Minor International PCL
Performance |
| Timeline |
| Affiliated Resources Corp |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Affiliated Resources and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affiliated Resources and Minor International
The main advantage of trading using opposite Affiliated Resources and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Resources position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International's long position.| Affiliated Resources vs. PT Astra International | Affiliated Resources vs. Astra International Tbk | Affiliated Resources vs. Mobileye Global Class | Affiliated Resources vs. HUMANA INC |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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