Correlation Between Anfield Resources and Baselode Energy
Can any of the company-specific risk be diversified away by investing in both Anfield Resources and Baselode Energy 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 Anfield Resources and Baselode Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anfield Resources and Baselode Energy Corp, you can compare the effects of market volatilities on Anfield Resources and Baselode Energy 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 Anfield Resources with a short position of Baselode Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anfield Resources and Baselode Energy.
Diversification Opportunities for Anfield Resources and Baselode Energy
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anfield and Baselode is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Anfield Resources and Baselode Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baselode Energy Corp and Anfield 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 Anfield Resources are associated (or correlated) with Baselode Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baselode Energy Corp has no effect on the direction of Anfield Resources i.e., Anfield Resources and Baselode Energy go up and down completely randomly.
Pair Corralation between Anfield Resources and Baselode Energy
Assuming the 90 days horizon Anfield Resources is expected to generate 1.37 times more return on investment than Baselode Energy. However, Anfield Resources is 1.37 times more volatile than Baselode Energy Corp. It trades about 0.07 of its potential returns per unit of risk. Baselode Energy Corp is currently generating about -0.2 per unit of risk. If you would invest 8.00 in Anfield Resources on August 25, 2024 and sell it today you would earn a total of 0.50 from holding Anfield Resources or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anfield Resources vs. Baselode Energy Corp
Performance |
| Timeline |
| Anfield Resources |
| Baselode Energy Corp |
Anfield Resources and Baselode Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anfield Resources and Baselode Energy
The main advantage of trading using opposite Anfield Resources and Baselode Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anfield Resources position performs unexpectedly, Baselode Energy 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 Baselode Energy will offset losses from the drop in Baselode Energy's long position.| Anfield Resources vs. Aura Energy Limited | Anfield Resources vs. Standard Uranium | Anfield Resources vs. Baselode Energy Corp | Anfield Resources vs. Alligator Energy Limited |
| Baselode Energy vs. Anfield Resources | Baselode Energy vs. Purepoint Uranium Group | Baselode Energy vs. Aura Energy Limited | Baselode Energy vs. ALX Resources 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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