Correlation Between Asante Gold and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Asante Gold and Advantage Solutions 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 Asante Gold and Advantage Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asante Gold and Advantage Solutions, you can compare the effects of market volatilities on Asante Gold and Advantage Solutions 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 Asante Gold with a short position of Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asante Gold and Advantage Solutions.
Diversification Opportunities for Asante Gold and Advantage Solutions
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asante and Advantage is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Asante Gold and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and Asante 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 Asante Gold are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Asante Gold i.e., Asante Gold and Advantage Solutions go up and down completely randomly.
Pair Corralation between Asante Gold and Advantage Solutions
Assuming the 90 days horizon Asante Gold is expected to under-perform the Advantage Solutions. But the pink sheet apears to be less risky and, when comparing its historical volatility, Asante Gold is 4.49 times less risky than Advantage Solutions. The pink sheet trades about -0.2 of its potential returns per unit of risk. The Advantage Solutions is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Advantage Solutions on September 4, 2024 and sell it today you would lose (0.50) from holding Advantage Solutions or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Asante Gold vs. Advantage Solutions
Performance |
| Timeline |
| Asante Gold |
| Advantage Solutions |
Asante Gold and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asante Gold and Advantage Solutions
The main advantage of trading using opposite Asante Gold and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asante Gold position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Asante Gold vs. Minnova Corp | Asante Gold vs. Argo Gold | Asante Gold vs. Advance Gold Corp | Asante Gold vs. Blue Star Gold |
| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |