Correlation Between Angkor Resources and Ascendant Resources
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Ascendant Resources 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 Ascendant Resources 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 Ascendant Resources, you can compare the effects of market volatilities on Angkor Resources and Ascendant Resources 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 Ascendant Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Ascendant Resources.
Diversification Opportunities for Angkor Resources and Ascendant Resources
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angkor and Ascendant is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Ascendant Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendant Resources 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 Ascendant Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendant Resources has no effect on the direction of Angkor Resources i.e., Angkor Resources and Ascendant Resources go up and down completely randomly.
Pair Corralation between Angkor Resources and Ascendant Resources
Assuming the 90 days horizon Angkor Resources Corp is expected to generate 0.72 times more return on investment than Ascendant Resources. However, Angkor Resources Corp is 1.39 times less risky than Ascendant Resources. It trades about 0.03 of its potential returns per unit of risk. Ascendant Resources is currently generating about 0.0 per unit of risk. If you would invest 6.01 in Angkor Resources Corp on August 26, 2024 and sell it today you would lose (0.21) from holding Angkor Resources Corp or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angkor Resources Corp vs. Ascendant Resources
Performance |
| Timeline |
| Angkor Resources Corp |
| Ascendant Resources |
Angkor Resources and Ascendant Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angkor Resources and Ascendant Resources
The main advantage of trading using opposite Angkor Resources and Ascendant Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Ascendant Resources 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 Ascendant Resources will offset losses from the drop in Ascendant Resources' long position.| Angkor Resources vs. Ascendant Resources | Angkor Resources vs. Cantex Mine Development | Angkor Resources vs. Amarc Resources | Angkor Resources vs. Sterling Metals Corp |
| Ascendant Resources vs. Norra Metals Corp | Ascendant Resources vs. ZincX Resources Corp | Ascendant Resources vs. Nuinsco Resources Limited | Ascendant Resources vs. South Star Battery |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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