Correlation Between Angkor Resources and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Angkor Resources and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Dow Jones.
Diversification Opportunities for Angkor Resources and Dow Jones
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angkor and Dow is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Angkor Resources i.e., Angkor Resources and Dow Jones go up and down completely randomly.
Pair Corralation between Angkor Resources and Dow Jones
Assuming the 90 days horizon Angkor Resources Corp is expected to generate 9.85 times more return on investment than Dow Jones. However, Angkor Resources is 9.85 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 4.17 in Angkor Resources Corp on August 29, 2024 and sell it today you would earn a total of 2.38 from holding Angkor Resources Corp or generate 57.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angkor Resources Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Angkor Resources and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Angkor Resources Corp
Pair trading matchups for Angkor Resources
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Angkor Resources and Dow Jones
The main advantage of trading using opposite Angkor Resources and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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