Correlation Between Amani Gold and G8 Education
Can any of the company-specific risk be diversified away by investing in both Amani Gold and G8 Education 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 G8 Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold and G8 Education, you can compare the effects of market volatilities on Amani Gold and G8 Education 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 G8 Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and G8 Education.
Diversification Opportunities for Amani Gold and G8 Education
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and GEM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold and G8 Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G8 Education 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 G8 Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G8 Education has no effect on the direction of Amani Gold i.e., Amani Gold and G8 Education go up and down completely randomly.
Pair Corralation between Amani Gold and G8 Education
If you would invest 94.00 in G8 Education on September 1, 2024 and sell it today you would earn a total of 42.00 from holding G8 Education or generate 44.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amani Gold vs. G8 Education
Performance |
| Timeline |
| Amani Gold |
| G8 Education |
Amani Gold and G8 Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and G8 Education
The main advantage of trading using opposite Amani Gold and G8 Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, G8 Education 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 G8 Education will offset losses from the drop in G8 Education's long position.| Amani Gold vs. REGAL ASIAN INVESTMENTS | Amani Gold vs. Perpetual Credit Income | Amani Gold vs. Argo Investments | Amani Gold vs. K2 Asset Management |
| G8 Education vs. Aneka Tambang Tbk | G8 Education vs. Macquarie Group | G8 Education vs. Macquarie Group Ltd | G8 Education vs. Challenger |
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 CEOs Directory module to screen CEOs from public companies around the world.
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