Correlation Between Ascot Resources and New Pacific
Can any of the company-specific risk be diversified away by investing in both Ascot Resources and New Pacific 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 Ascot Resources and New Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascot Resources and New Pacific Metals, you can compare the effects of market volatilities on Ascot Resources and New Pacific 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 Ascot Resources with a short position of New Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascot Resources and New Pacific.
Diversification Opportunities for Ascot Resources and New Pacific
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ascot and New is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ascot Resources and New Pacific Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Pacific Metals and Ascot 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 Ascot Resources are associated (or correlated) with New Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Pacific Metals has no effect on the direction of Ascot Resources i.e., Ascot Resources and New Pacific go up and down completely randomly.
Pair Corralation between Ascot Resources and New Pacific
Assuming the 90 days trading horizon Ascot Resources is expected to generate 1.23 times more return on investment than New Pacific. However, Ascot Resources is 1.23 times more volatile than New Pacific Metals. It trades about 0.01 of its potential returns per unit of risk. New Pacific Metals is currently generating about 0.0 per unit of risk. If you would invest 43.00 in Ascot Resources on September 2, 2024 and sell it today you would lose (21.00) from holding Ascot Resources or give up 48.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascot Resources vs. New Pacific Metals
Performance |
| Timeline |
| Ascot Resources |
| New Pacific Metals |
Ascot Resources and New Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascot Resources and New Pacific
The main advantage of trading using opposite Ascot Resources and New Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascot Resources position performs unexpectedly, New Pacific 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 New Pacific will offset losses from the drop in New Pacific's long position.| Ascot Resources vs. Western Investment | Ascot Resources vs. Canlan Ice Sports | Ascot Resources vs. Atrium Mortgage Investment | Ascot Resources vs. Pembina Pipeline Corp |
| New Pacific vs. SilverCrest Metals | New Pacific vs. Skeena Resources | New Pacific vs. Ascot Resources | New Pacific vs. Orla Mining |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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