Correlation Between Anglo American and NewFunds MAPPS
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By analyzing existing cross correlation between Anglo American Platinum and NewFunds MAPPS Growth, you can compare the effects of market volatilities on Anglo American and NewFunds MAPPS 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 Anglo American with a short position of NewFunds MAPPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and NewFunds MAPPS.
Diversification Opportunities for Anglo American and NewFunds MAPPS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anglo and NewFunds is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American Platinum and NewFunds MAPPS Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFunds MAPPS Growth and Anglo American 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 Anglo American Platinum are associated (or correlated) with NewFunds MAPPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFunds MAPPS Growth has no effect on the direction of Anglo American i.e., Anglo American and NewFunds MAPPS go up and down completely randomly.
Pair Corralation between Anglo American and NewFunds MAPPS
Assuming the 90 days trading horizon Anglo American is expected to generate 1.29 times less return on investment than NewFunds MAPPS. In addition to that, Anglo American is 4.24 times more volatile than NewFunds MAPPS Growth. It trades about 0.02 of its total potential returns per unit of risk. NewFunds MAPPS Growth is currently generating about 0.09 per unit of volatility. If you would invest 299,300 in NewFunds MAPPS Growth on August 30, 2024 and sell it today you would earn a total of 27,500 from holding NewFunds MAPPS Growth or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo American Platinum vs. NewFunds MAPPS Growth
Performance |
| Timeline |
| Anglo American Platinum |
| NewFunds MAPPS Growth |
Anglo American and NewFunds MAPPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo American and NewFunds MAPPS
The main advantage of trading using opposite Anglo American and NewFunds MAPPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo American position performs unexpectedly, NewFunds MAPPS 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 NewFunds MAPPS will offset losses from the drop in NewFunds MAPPS's long position.The idea behind Anglo American Platinum and NewFunds MAPPS Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| NewFunds MAPPS vs. NewFunds GOVI Exchange | NewFunds MAPPS vs. NewFunds Shariah Top | NewFunds MAPPS vs. NewFunds Low Volatility | NewFunds MAPPS vs. NewFunds TRACI 3 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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