Correlation Between Amani Gold and Aristocrat Leisure
Can any of the company-specific risk be diversified away by investing in both Amani Gold and Aristocrat Leisure 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 Amani Gold and Aristocrat Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold and Aristocrat Leisure, you can compare the effects of market volatilities on Amani Gold and Aristocrat Leisure 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 Amani Gold with a short position of Aristocrat Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Aristocrat Leisure.
Diversification Opportunities for Amani Gold and Aristocrat Leisure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and Aristocrat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold and Aristocrat Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristocrat Leisure and Amani Gold 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 Amani Gold are associated (or correlated) with Aristocrat Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristocrat Leisure has no effect on the direction of Amani Gold i.e., Amani Gold and Aristocrat Leisure go up and down completely randomly.
Pair Corralation between Amani Gold and Aristocrat Leisure
If you would invest 6,453 in Aristocrat Leisure on September 13, 2024 and sell it today you would earn a total of 250.00 from holding Aristocrat Leisure or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amani Gold vs. Aristocrat Leisure
Performance |
| Timeline |
| Amani Gold |
| Aristocrat Leisure |
Amani Gold and Aristocrat Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Aristocrat Leisure
The main advantage of trading using opposite Amani Gold and Aristocrat Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, Aristocrat Leisure 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 Aristocrat Leisure will offset losses from the drop in Aristocrat Leisure's long position.| Amani Gold vs. Northern Star Resources | Amani Gold vs. Evolution Mining | Amani Gold vs. Bluescope Steel | Amani Gold vs. Sandfire Resources NL |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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