Correlation Between Ascendant Resources and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Ascendant Resources 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 Ascendant Resources and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendant Resources and Angkor Resources Corp, you can compare the effects of market volatilities on Ascendant Resources 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 Ascendant Resources with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendant Resources and Angkor Resources.
Diversification Opportunities for Ascendant Resources and Angkor Resources
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascendant and Angkor is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ascendant Resources 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 Ascendant 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 Ascendant Resources 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 Ascendant Resources i.e., Ascendant Resources and Angkor Resources go up and down completely randomly.
Pair Corralation between Ascendant Resources and Angkor Resources
Assuming the 90 days horizon Ascendant Resources is expected to generate 1.64 times more return on investment than Angkor Resources. However, Ascendant Resources is 1.64 times more volatile than Angkor Resources Corp. It trades about 0.06 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.0 per unit of risk. If you would invest 3.00 in Ascendant Resources on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Ascendant Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendant Resources vs. Angkor Resources Corp
Performance |
| Timeline |
| Ascendant Resources |
| Angkor Resources Corp |
Ascendant Resources and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendant Resources and Angkor Resources
The main advantage of trading using opposite Ascendant Resources and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendant Resources 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.| Ascendant Resources vs. Rockridge Resources | Ascendant Resources vs. Ameriwest Lithium | Ascendant Resources vs. Osisko Metals Incorporated | Ascendant Resources vs. Volt Lithium Corp |
| Angkor Resources vs. Argo Gold | Angkor Resources vs. Blue Star Gold | Angkor Resources vs. Advance Gold Corp | Angkor Resources vs. Advance United Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |