Correlation Between Angkor Resources and Blue Star
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Blue Star 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 Blue Star 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 Blue Star Gold, you can compare the effects of market volatilities on Angkor Resources and Blue Star 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 Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Blue Star.
Diversification Opportunities for Angkor Resources and Blue Star
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angkor and Blue is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Blue Star Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star 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 Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Gold has no effect on the direction of Angkor Resources i.e., Angkor Resources and Blue Star go up and down completely randomly.
Pair Corralation between Angkor Resources and Blue Star
Assuming the 90 days horizon Angkor Resources Corp is expected to generate 1.62 times more return on investment than Blue Star. However, Angkor Resources is 1.62 times more volatile than Blue Star Gold. It trades about -0.02 of its potential returns per unit of risk. Blue Star Gold is currently generating about -0.16 per unit of risk. If you would invest 7.70 in Angkor Resources Corp on August 25, 2024 and sell it today you would lose (1.90) from holding Angkor Resources Corp or give up 24.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angkor Resources Corp vs. Blue Star Gold
Performance |
| Timeline |
| Angkor Resources Corp |
| Blue Star Gold |
Angkor Resources and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angkor Resources and Blue Star
The main advantage of trading using opposite Angkor Resources and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Blue Star 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 Blue Star will offset losses from the drop in Blue Star's long position.| Angkor Resources vs. Ascendant Resources | Angkor Resources vs. Cantex Mine Development | Angkor Resources vs. Amarc Resources | Angkor Resources vs. Sterling Metals Corp |
| Blue Star vs. Aurion Resources | Blue Star vs. Liberty Gold Corp | Blue Star vs. Rio2 Limited | Blue Star vs. Orezone Gold 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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