Correlation Between Amex Exploration and Angus Gold
Can any of the company-specific risk be diversified away by investing in both Amex Exploration and Angus Gold 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 Amex Exploration and Angus Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amex Exploration and Angus Gold, you can compare the effects of market volatilities on Amex Exploration and Angus Gold 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 Amex Exploration with a short position of Angus Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amex Exploration and Angus Gold.
Diversification Opportunities for Amex Exploration and Angus Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amex and Angus is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Amex Exploration and Angus Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angus Gold and Amex Exploration 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 Amex Exploration are associated (or correlated) with Angus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angus Gold has no effect on the direction of Amex Exploration i.e., Amex Exploration and Angus Gold go up and down completely randomly.
Pair Corralation between Amex Exploration and Angus Gold
Assuming the 90 days horizon Amex Exploration is expected to under-perform the Angus Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Amex Exploration is 2.7 times less risky than Angus Gold. The otc stock trades about -0.12 of its potential returns per unit of risk. The Angus Gold is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Angus Gold on September 13, 2024 and sell it today you would lose (8.00) from holding Angus Gold or give up 18.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amex Exploration vs. Angus Gold
Performance |
| Timeline |
| Amex Exploration |
| Angus Gold |
Amex Exploration and Angus Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amex Exploration and Angus Gold
The main advantage of trading using opposite Amex Exploration and Angus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amex Exploration position performs unexpectedly, Angus Gold 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 Angus Gold will offset losses from the drop in Angus Gold's long position.| Amex Exploration vs. Minnova Corp | Amex Exploration vs. Argo Gold | Amex Exploration vs. Advance Gold Corp | Amex Exploration vs. Blue Star Gold |
| Angus Gold vs. Revival Gold | Angus Gold vs. Galiano Gold | Angus Gold vs. US Gold Corp | Angus Gold vs. HUMANA INC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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