Correlation Between Antioquia Gold and Advance United
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Advance United 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 Antioquia Gold and Advance United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Advance United Holdings, you can compare the effects of market volatilities on Antioquia Gold and Advance United 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 Antioquia Gold with a short position of Advance United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Advance United.
Diversification Opportunities for Antioquia Gold and Advance United
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Antioquia and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Advance United Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance United Holdings and Antioquia 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 Antioquia Gold are associated (or correlated) with Advance United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance United Holdings has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Advance United go up and down completely randomly.
Pair Corralation between Antioquia Gold and Advance United
If you would invest 1.00 in Antioquia Gold on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Antioquia Gold vs. Advance United Holdings
Performance |
| Timeline |
| Antioquia Gold |
| Advance United Holdings |
Antioquia Gold and Advance United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Advance United
The main advantage of trading using opposite Antioquia Gold and Advance United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Advance United 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 Advance United will offset losses from the drop in Advance United's long position.| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold Corp |
| Advance United vs. Aurion Resources | Advance United vs. Rio2 Limited | Advance United vs. Palamina Corp | Advance United vs. BTU 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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