Correlation Between Antofagasta PLC and Beowulf Mining
Can any of the company-specific risk be diversified away by investing in both Antofagasta PLC and Beowulf Mining 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 Antofagasta PLC and Beowulf Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta PLC and Beowulf Mining, you can compare the effects of market volatilities on Antofagasta PLC and Beowulf Mining 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 Antofagasta PLC with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta PLC and Beowulf Mining.
Diversification Opportunities for Antofagasta PLC and Beowulf Mining
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Antofagasta and Beowulf is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta PLC and Beowulf Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining and Antofagasta PLC 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 Antofagasta PLC are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining has no effect on the direction of Antofagasta PLC i.e., Antofagasta PLC and Beowulf Mining go up and down completely randomly.
Pair Corralation between Antofagasta PLC and Beowulf Mining
Assuming the 90 days trading horizon Antofagasta PLC is expected to under-perform the Beowulf Mining. In addition to that, Antofagasta PLC is 2.95 times more volatile than Beowulf Mining. It trades about -0.11 of its total potential returns per unit of risk. Beowulf Mining is currently generating about -0.31 per unit of volatility. If you would invest 2,000 in Beowulf Mining on August 31, 2024 and sell it today you would lose (100.00) from holding Beowulf Mining or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Antofagasta PLC vs. Beowulf Mining
Performance |
| Timeline |
| Antofagasta PLC |
| Beowulf Mining |
Antofagasta PLC and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta PLC and Beowulf Mining
The main advantage of trading using opposite Antofagasta PLC and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta PLC position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Antofagasta PLC vs. Centamin PLC | Antofagasta PLC vs. Central Asia Metals | Antofagasta PLC vs. Anglo Asian Mining | Antofagasta PLC vs. Metals Exploration Plc |
| Beowulf Mining vs. Centamin PLC | Beowulf Mining vs. Central Asia Metals | Beowulf Mining vs. Anglo Asian Mining | Beowulf Mining vs. Metals Exploration Plc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |