Correlation Between AfriTin Mining and AMG Advanced
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining and AMG Advanced 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 AMG Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and AMG Advanced Metallurgical, you can compare the effects of market volatilities on AfriTin Mining and AMG Advanced 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 AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and AMG Advanced.
Diversification Opportunities for AfriTin Mining and AMG Advanced
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AfriTin and AMG is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu 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 AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and AMG Advanced go up and down completely randomly.
Pair Corralation between AfriTin Mining and AMG Advanced
Assuming the 90 days trading horizon AfriTin Mining is expected to generate 1.37 times more return on investment than AMG Advanced. However, AfriTin Mining is 1.37 times more volatile than AMG Advanced Metallurgical. It trades about -0.04 of its potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about -0.11 per unit of risk. If you would invest 605.00 in AfriTin Mining on September 2, 2024 and sell it today you would lose (330.00) from holding AfriTin Mining or give up 54.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AfriTin Mining vs. AMG Advanced Metallurgical
Performance |
| Timeline |
| AfriTin Mining |
| AMG Advanced Metallu |
AfriTin Mining and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and AMG Advanced
The main advantage of trading using opposite AfriTin Mining and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.| AfriTin Mining vs. PureTech Health plc | AfriTin Mining vs. Schweiter Technologies AG | AfriTin Mining vs. Aeorema Communications Plc | AfriTin Mining vs. Roper Technologies |
| AMG Advanced vs. Uniper SE | AMG Advanced vs. Mulberry Group PLC | AMG Advanced vs. London Security Plc | AMG Advanced vs. Triad Group PLC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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