Correlation Between American International and Puma Exploration
Can any of the company-specific risk be diversified away by investing in both American International and Puma Exploration 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 American International and Puma Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American International Ventures and Puma Exploration, you can compare the effects of market volatilities on American International and Puma Exploration 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 American International with a short position of Puma Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of American International and Puma Exploration.
Diversification Opportunities for American International and Puma Exploration
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Puma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American International Venture and Puma Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma Exploration and American International 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 American International Ventures are associated (or correlated) with Puma Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma Exploration has no effect on the direction of American International i.e., American International and Puma Exploration go up and down completely randomly.
Pair Corralation between American International and Puma Exploration
Given the investment horizon of 90 days American International Ventures is expected to generate 9.74 times more return on investment than Puma Exploration. However, American International is 9.74 times more volatile than Puma Exploration. It trades about 0.06 of its potential returns per unit of risk. Puma Exploration is currently generating about 0.01 per unit of risk. If you would invest 0.01 in American International Ventures on August 29, 2024 and sell it today you would earn a total of 0.18 from holding American International Ventures or generate 1800.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American International Venture vs. Puma Exploration
Performance |
| Timeline |
| American International |
| Puma Exploration |
American International and Puma Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American International and Puma Exploration
The main advantage of trading using opposite American International and Puma Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American International position performs unexpectedly, Puma Exploration 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 Puma Exploration will offset losses from the drop in Puma Exploration's long position.| American International vs. Labrador Gold Corp | American International vs. Aurion Resources | American International vs. Puma Exploration | American International vs. Golden Star Resource |
| Puma Exploration vs. Aurion Resources | Puma Exploration vs. Liberty Gold Corp | Puma Exploration vs. Orezone Gold Corp | Puma Exploration vs. Fortuna Silver Mines |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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