Correlation Between Anson Resources and Huntsman Exploration
Can any of the company-specific risk be diversified away by investing in both Anson Resources and Huntsman Exploration 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 Anson Resources and Huntsman Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anson Resources Limited and Huntsman Exploration, you can compare the effects of market volatilities on Anson Resources and Huntsman Exploration 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 Anson Resources with a short position of Huntsman Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anson Resources and Huntsman Exploration.
Diversification Opportunities for Anson Resources and Huntsman Exploration
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anson and Huntsman is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Anson Resources Limited and Huntsman Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman Exploration and Anson 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 Anson Resources Limited are associated (or correlated) with Huntsman Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman Exploration has no effect on the direction of Anson Resources i.e., Anson Resources and Huntsman Exploration go up and down completely randomly.
Pair Corralation between Anson Resources and Huntsman Exploration
Assuming the 90 days horizon Anson Resources Limited is expected to generate 0.84 times more return on investment than Huntsman Exploration. However, Anson Resources Limited is 1.19 times less risky than Huntsman Exploration. It trades about 0.13 of its potential returns per unit of risk. Huntsman Exploration is currently generating about 0.11 per unit of risk. If you would invest 3.13 in Anson Resources Limited on December 1, 2024 and sell it today you would earn a total of 0.87 from holding Anson Resources Limited or generate 27.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Anson Resources Limited vs. Huntsman Exploration
Performance |
| Timeline |
| Anson Resources |
| Huntsman Exploration |
Anson Resources and Huntsman Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anson Resources and Huntsman Exploration
The main advantage of trading using opposite Anson Resources and Huntsman Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anson Resources position performs unexpectedly, Huntsman Exploration 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 Huntsman Exploration will offset losses from the drop in Huntsman Exploration's long position.| Anson Resources vs. Edison Cobalt Corp | Anson Resources vs. Champion Bear Resources | Anson Resources vs. Avarone Metals | Anson Resources vs. Adriatic Metals PLC |
| Huntsman Exploration vs. Aurelia Metals Limited | Huntsman Exploration vs. Adriatic Metals PLC | Huntsman Exploration vs. American Helium | Huntsman Exploration vs. Progressive Planet Solutions |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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