Correlation Between Angkor Resources and Argo Gold
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Argo 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 Angkor Resources and Argo Gold 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 Argo Gold, you can compare the effects of market volatilities on Angkor Resources and Argo 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 Angkor Resources with a short position of Argo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Argo Gold.
Diversification Opportunities for Angkor Resources and Argo Gold
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Angkor and Argo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Argo Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo 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 Argo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Gold has no effect on the direction of Angkor Resources i.e., Angkor Resources and Argo Gold go up and down completely randomly.
Pair Corralation between Angkor Resources and Argo Gold
Assuming the 90 days horizon Angkor Resources Corp is expected to generate 1.65 times more return on investment than Argo Gold. However, Angkor Resources is 1.65 times more volatile than Argo Gold. It trades about -0.07 of its potential returns per unit of risk. Argo Gold is currently generating about -0.24 per unit of risk. If you would invest 7.60 in Angkor Resources Corp on August 29, 2024 and sell it today you would lose (1.05) from holding Angkor Resources Corp or give up 13.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angkor Resources Corp vs. Argo Gold
Performance |
| Timeline |
| Angkor Resources Corp |
| Argo Gold |
Angkor Resources and Argo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angkor Resources and Argo Gold
The main advantage of trading using opposite Angkor Resources and Argo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Argo 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 Argo Gold will offset losses from the drop in Argo Gold's long position.| Angkor Resources vs. Argo Gold | Angkor Resources vs. Blue Star Gold | Angkor Resources vs. Advance Gold Corp | Angkor Resources vs. Advance United Holdings |
| Argo Gold vs. Vertiv Holdings Co | Argo Gold vs. Nasdaq Inc | Argo Gold vs. McDonalds | Argo Gold vs. Walmart |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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