Correlation Between AfriTin Mining and Automatic Data
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining and Automatic Data 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 AfriTin Mining and Automatic Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and Automatic Data Processing, you can compare the effects of market volatilities on AfriTin Mining and Automatic Data 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 AfriTin Mining with a short position of Automatic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Automatic Data.
Diversification Opportunities for AfriTin Mining and Automatic Data
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AfriTin and Automatic is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and Automatic Data Processing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Data Processing and AfriTin Mining 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 AfriTin Mining are associated (or correlated) with Automatic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Data Processing has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and Automatic Data go up and down completely randomly.
Pair Corralation between AfriTin Mining and Automatic Data
Assuming the 90 days trading horizon AfriTin Mining is expected to under-perform the Automatic Data. But the stock apears to be less risky and, when comparing its historical volatility, AfriTin Mining is 2.49 times less risky than Automatic Data. The stock trades about -0.07 of its potential returns per unit of risk. The Automatic Data Processing is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 23,179 in Automatic Data Processing on September 12, 2024 and sell it today you would earn a total of 7,208 from holding Automatic Data Processing or generate 31.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
AfriTin Mining vs. Automatic Data Processing
Performance |
| Timeline |
| AfriTin Mining |
| Automatic Data Processing |
AfriTin Mining and Automatic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and Automatic Data
The main advantage of trading using opposite AfriTin Mining and Automatic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining position performs unexpectedly, Automatic Data 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 Automatic Data will offset losses from the drop in Automatic Data's long position.| AfriTin Mining vs. JD Sports Fashion | AfriTin Mining vs. Vitec Software Group | AfriTin Mining vs. GreenX Metals | AfriTin Mining vs. Empire Metals Limited |
| Automatic Data vs. Alfa Financial Software | Automatic Data vs. Sabien Technology Group | Automatic Data vs. Sunny Optical Technology | Automatic Data vs. Pfeiffer Vacuum Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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