Correlation Between Asante Gold and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Asante Gold 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 Asante Gold and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asante Gold and Angkor Resources Corp, you can compare the effects of market volatilities on Asante Gold 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 Asante Gold with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asante Gold and Angkor Resources.
Diversification Opportunities for Asante Gold and Angkor Resources
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asante and Angkor is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Asante Gold 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 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 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 Asante Gold i.e., Asante Gold and Angkor Resources go up and down completely randomly.
Pair Corralation between Asante Gold and Angkor Resources
Assuming the 90 days horizon Asante Gold is expected to generate 0.42 times more return on investment than Angkor Resources. However, Asante Gold is 2.36 times less risky than Angkor Resources. It trades about -0.19 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about -0.13 per unit of risk. If you would invest 97.00 in Asante Gold on August 25, 2024 and sell it today you would lose (12.00) from holding Asante Gold or give up 12.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asante Gold vs. Angkor Resources Corp
Performance |
| Timeline |
| Asante Gold |
| Angkor Resources Corp |
Asante Gold and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asante Gold and Angkor Resources
The main advantage of trading using opposite Asante Gold and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asante Gold 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.| Asante Gold vs. Ascendant Resources | Asante Gold vs. Cantex Mine Development | Asante Gold vs. Amarc Resources | Asante Gold vs. Sterling Metals Corp |
| Angkor Resources vs. Ascendant Resources | Angkor Resources vs. Cantex Mine Development | Angkor Resources vs. Amarc Resources | Angkor Resources vs. Sterling Metals Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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