Correlation Between Angkor Resources and Asiabasemetals
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Asiabasemetals 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 Angkor Resources and Asiabasemetals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angkor Resources Corp and Asiabasemetals, you can compare the effects of market volatilities on Angkor Resources and Asiabasemetals 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 Angkor Resources with a short position of Asiabasemetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Asiabasemetals.
Diversification Opportunities for Angkor Resources and Asiabasemetals
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Angkor and Asiabasemetals is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Asiabasemetals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiabasemetals and Angkor Resources 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 Angkor Resources Corp are associated (or correlated) with Asiabasemetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiabasemetals has no effect on the direction of Angkor Resources i.e., Angkor Resources and Asiabasemetals go up and down completely randomly.
Pair Corralation between Angkor Resources and Asiabasemetals
Assuming the 90 days horizon Angkor Resources Corp is expected to generate 2.83 times more return on investment than Asiabasemetals. However, Angkor Resources is 2.83 times more volatile than Asiabasemetals. It trades about 0.18 of its potential returns per unit of risk. Asiabasemetals is currently generating about 0.01 per unit of risk. If you would invest 10.00 in Angkor Resources Corp on November 27, 2024 and sell it today you would earn a total of 2.00 from holding Angkor Resources Corp or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angkor Resources Corp vs. Asiabasemetals
Performance |
| Timeline |
| Angkor Resources Corp |
| Asiabasemetals |
Angkor Resources and Asiabasemetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angkor Resources and Asiabasemetals
The main advantage of trading using opposite Angkor Resources and Asiabasemetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Asiabasemetals 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 Asiabasemetals will offset losses from the drop in Asiabasemetals' long position.| Angkor Resources vs. Lupaka Gold Corp | Angkor Resources vs. Avrupa Minerals | Angkor Resources vs. Asiabasemetals |
| Asiabasemetals vs. Perseus Mining | Asiabasemetals vs. XXIX Metal Corp | Asiabasemetals vs. Champion Iron | Asiabasemetals vs. Diamond Estates Wines |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |