Correlation Between Angkor Resources and Avidian Gold
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Avidian 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 Avidian 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 Avidian Gold Corp, you can compare the effects of market volatilities on Angkor Resources and Avidian 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 Avidian Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Avidian Gold.
Diversification Opportunities for Angkor Resources and Avidian Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angkor and Avidian is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Avidian Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avidian Gold Corp 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 Avidian Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avidian Gold Corp has no effect on the direction of Angkor Resources i.e., Angkor Resources and Avidian Gold go up and down completely randomly.
Pair Corralation between Angkor Resources and Avidian Gold
Assuming the 90 days horizon Angkor Resources Corp is expected to under-perform the Avidian Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Angkor Resources Corp is 3.3 times less risky than Avidian Gold. The otc stock trades about -0.07 of its potential returns per unit of risk. The Avidian Gold Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9.62 in Avidian Gold Corp on September 5, 2024 and sell it today you would lose (0.36) from holding Avidian Gold Corp or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Angkor Resources Corp vs. Avidian Gold Corp
Performance |
| Timeline |
| Angkor Resources Corp |
| Avidian Gold Corp |
Angkor Resources and Avidian Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angkor Resources and Avidian Gold
The main advantage of trading using opposite Angkor Resources and Avidian Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Avidian 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 Avidian Gold will offset losses from the drop in Avidian 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 |
| Avidian Gold vs. Minnova Corp | Avidian Gold vs. Blue Star Gold | Avidian Gold vs. Advance Gold Corp | Avidian Gold vs. Angkor Resources 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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