Correlation Between Amaroq Minerals and First Tin
Can any of the company-specific risk be diversified away by investing in both Amaroq Minerals and First Tin 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 Amaroq Minerals and First Tin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amaroq Minerals and First Tin PLC, you can compare the effects of market volatilities on Amaroq Minerals and First Tin 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 Amaroq Minerals with a short position of First Tin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amaroq Minerals and First Tin.
Diversification Opportunities for Amaroq Minerals and First Tin
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amaroq and First is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Amaroq Minerals and First Tin PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Tin PLC and Amaroq Minerals 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 Amaroq Minerals are associated (or correlated) with First Tin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Tin PLC has no effect on the direction of Amaroq Minerals i.e., Amaroq Minerals and First Tin go up and down completely randomly.
Pair Corralation between Amaroq Minerals and First Tin
Assuming the 90 days trading horizon Amaroq Minerals is expected to generate 0.92 times more return on investment than First Tin. However, Amaroq Minerals is 1.09 times less risky than First Tin. It trades about 0.13 of its potential returns per unit of risk. First Tin PLC is currently generating about -0.23 per unit of risk. If you would invest 8,000 in Amaroq Minerals on August 30, 2024 and sell it today you would earn a total of 550.00 from holding Amaroq Minerals or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amaroq Minerals vs. First Tin PLC
Performance |
| Timeline |
| Amaroq Minerals |
| First Tin PLC |
Amaroq Minerals and First Tin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amaroq Minerals and First Tin
The main advantage of trading using opposite Amaroq Minerals and First Tin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amaroq Minerals position performs unexpectedly, First Tin 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 First Tin will offset losses from the drop in First Tin's long position.| Amaroq Minerals vs. Check Point Software | Amaroq Minerals vs. PureTech Health plc | Amaroq Minerals vs. Made Tech Group | Amaroq Minerals vs. Uber Technologies |
| First Tin vs. Catalyst Media Group | First Tin vs. United Utilities Group | First Tin vs. AcadeMedia AB | First Tin vs. Zinc Media Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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