Correlation Between Angkor Resources and Liberty Gold
Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Liberty 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 Liberty 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 Liberty Gold Corp, you can compare the effects of market volatilities on Angkor Resources and Liberty 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 Liberty Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Liberty Gold.
Diversification Opportunities for Angkor Resources and Liberty Gold
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angkor and Liberty is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Liberty Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty 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 Liberty Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Gold Corp has no effect on the direction of Angkor Resources i.e., Angkor Resources and Liberty Gold go up and down completely randomly.
Pair Corralation between Angkor Resources and Liberty Gold
Assuming the 90 days horizon Angkor Resources Corp is expected to generate 1.53 times more return on investment than Liberty Gold. However, Angkor Resources is 1.53 times more volatile than Liberty Gold Corp. It trades about -0.06 of its potential returns per unit of risk. Liberty Gold Corp is currently generating about -0.17 per unit of risk. If you would invest 7.46 in Angkor Resources Corp on August 31, 2024 and sell it today you would lose (0.91) from holding Angkor Resources Corp or give up 12.2% 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. Liberty Gold Corp
Performance |
| Timeline |
| Angkor Resources Corp |
| Liberty Gold Corp |
Angkor Resources and Liberty Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angkor Resources and Liberty Gold
The main advantage of trading using opposite Angkor Resources and Liberty Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources position performs unexpectedly, Liberty 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 Liberty Gold will offset losses from the drop in Liberty Gold's long position.| Angkor Resources vs. South32 Limited | Angkor Resources vs. NioCorp Developments Ltd | Angkor Resources vs. HUMANA INC | Angkor Resources vs. SCOR PK |
| Liberty Gold vs. Rio2 Limited | Liberty Gold vs. Aurion Resources | Liberty Gold vs. Norsemont Mining | Liberty Gold vs. Minaurum Gold |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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