Correlation Between Antilles Gold and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Antilles Gold and Angkor Resources 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 Antilles Gold and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antilles Gold Limited and Angkor Resources Corp, you can compare the effects of market volatilities on Antilles Gold and Angkor Resources 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 Antilles Gold with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antilles Gold and Angkor Resources.
Diversification Opportunities for Antilles Gold and Angkor Resources
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Antilles and Angkor is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Antilles Gold Limited and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp and Antilles 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 Antilles Gold Limited are associated (or correlated) with Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Antilles Gold i.e., Antilles Gold and Angkor Resources go up and down completely randomly.
Pair Corralation between Antilles Gold and Angkor Resources
Assuming the 90 days horizon Antilles Gold Limited is expected to generate 2.62 times more return on investment than Angkor Resources. However, Antilles Gold is 2.62 times more volatile than Angkor Resources Corp. It trades about 0.32 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about -0.13 per unit of risk. If you would invest 0.22 in Antilles Gold Limited on August 25, 2024 and sell it today you would earn a total of 0.38 from holding Antilles Gold Limited or generate 172.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antilles Gold Limited vs. Angkor Resources Corp
Performance |
| Timeline |
| Antilles Gold Limited |
| Angkor Resources Corp |
Antilles Gold and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antilles Gold and Angkor Resources
The main advantage of trading using opposite Antilles Gold and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antilles Gold position performs unexpectedly, Angkor Resources 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Antilles Gold vs. Aurion Resources | Antilles Gold vs. Liberty Gold Corp | Antilles Gold vs. Rio2 Limited | Antilles Gold vs. Orezone Gold Corp |
| Angkor Resources vs. Ascendant Resources | Angkor Resources vs. Cantex Mine Development | Angkor Resources vs. Amarc Resources | Angkor Resources vs. Sterling Metals 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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