Correlation Between Angkor Resources and Advance United
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Advance United 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 Advance United 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 Advance United Holdings, you can compare the effects of market volatilities on Angkor Resources and Advance United 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 Advance United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Advance United.
Diversification Opportunities for Angkor Resources and Advance United
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Angkor and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Advance United Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance United Holdings 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 Advance United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance United Holdings has no effect on the direction of Angkor Resources i.e., Angkor Resources and Advance United go up and down completely randomly.
Pair Corralation between Angkor Resources and Advance United
Assuming the 90 days horizon Angkor Resources Corp is expected to generate 2.08 times more return on investment than Advance United. However, Angkor Resources is 2.08 times more volatile than Advance United Holdings. It trades about 0.03 of its potential returns per unit of risk. Advance United Holdings is currently generating about -0.09 per unit of risk. If you would invest 7.00 in Angkor Resources Corp on September 1, 2024 and sell it today you would lose (0.45) from holding Angkor Resources Corp or give up 6.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Angkor Resources Corp vs. Advance United Holdings
Performance |
| Timeline |
| Angkor Resources Corp |
| Advance United Holdings |
Angkor Resources and Advance United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angkor Resources and Advance United
The main advantage of trading using opposite Angkor Resources and Advance United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Advance United 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 Advance United will offset losses from the drop in Advance United's long position.| Angkor Resources vs. South32 Limited | Angkor Resources vs. NioCorp Developments Ltd | Angkor Resources vs. HUMANA INC | Angkor Resources vs. SCOR PK |
| Advance United vs. Aurion Resources | Advance United vs. Rio2 Limited | Advance United vs. Palamina Corp | Advance United vs. BTU Metals Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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