Correlation Between Angkor Resources and Big Ridge
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Big Ridge 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 Big Ridge 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 Big Ridge Gold, you can compare the effects of market volatilities on Angkor Resources and Big Ridge 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 Big Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Big Ridge.
Diversification Opportunities for Angkor Resources and Big Ridge
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angkor and Big is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Big Ridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Ridge Gold 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 Big Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Ridge Gold has no effect on the direction of Angkor Resources i.e., Angkor Resources and Big Ridge go up and down completely randomly.
Pair Corralation between Angkor Resources and Big Ridge
Assuming the 90 days horizon Angkor Resources is expected to generate 62.1 times less return on investment than Big Ridge. In addition to that, Angkor Resources is 1.15 times more volatile than Big Ridge Gold. It trades about 0.0 of its total potential returns per unit of risk. Big Ridge Gold is currently generating about 0.16 per unit of volatility. If you would invest 4.00 in Big Ridge Gold on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Big Ridge Gold or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Angkor Resources Corp vs. Big Ridge Gold
Performance |
| Timeline |
| Angkor Resources Corp |
| Big Ridge Gold |
Angkor Resources and Big Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angkor Resources and Big Ridge
The main advantage of trading using opposite Angkor Resources and Big Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Big Ridge 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 Big Ridge will offset losses from the drop in Big Ridge's long position.| Angkor Resources vs. Advantage Solutions | Angkor Resources vs. Atlas Corp | Angkor Resources vs. PureCycle Technologies | Angkor Resources vs. WM Technology |
| Big Ridge vs. Minnova Corp | Big Ridge vs. Argo Gold | Big Ridge vs. Advance Gold Corp | Big Ridge vs. Blue Star Gold |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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