Correlation Between Argo Investments and Strickland Metals
Can any of the company-specific risk be diversified away by investing in both Argo Investments and Strickland Metals 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 Argo Investments and Strickland Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Investments and Strickland Metals, you can compare the effects of market volatilities on Argo Investments and Strickland Metals 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 Argo Investments with a short position of Strickland Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Investments and Strickland Metals.
Diversification Opportunities for Argo Investments and Strickland Metals
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Argo and Strickland is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Argo Investments and Strickland Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strickland Metals and Argo Investments 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 Argo Investments are associated (or correlated) with Strickland Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strickland Metals has no effect on the direction of Argo Investments i.e., Argo Investments and Strickland Metals go up and down completely randomly.
Pair Corralation between Argo Investments and Strickland Metals
Assuming the 90 days trading horizon Argo Investments is expected to generate 0.12 times more return on investment than Strickland Metals. However, Argo Investments is 8.61 times less risky than Strickland Metals. It trades about 0.1 of its potential returns per unit of risk. Strickland Metals is currently generating about -0.03 per unit of risk. If you would invest 852.00 in Argo Investments on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Argo Investments or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Investments vs. Strickland Metals
Performance |
| Timeline |
| Argo Investments |
| Strickland Metals |
Argo Investments and Strickland Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Investments and Strickland Metals
The main advantage of trading using opposite Argo Investments and Strickland Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Investments position performs unexpectedly, Strickland Metals 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 Strickland Metals will offset losses from the drop in Strickland Metals' long position.| Argo Investments vs. Queste Communications | Argo Investments vs. Diversified United Investment | Argo Investments vs. Dexus Convenience Retail | Argo Investments vs. Super Retail Group |
| Strickland Metals vs. Northern Star Resources | Strickland Metals vs. Evolution Mining | Strickland Metals vs. Bluescope Steel | Strickland Metals vs. Aneka Tambang Tbk |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |