Correlation Between AfriTin Mining and Givaudan
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining and Givaudan 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 Givaudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and Givaudan SA, you can compare the effects of market volatilities on AfriTin Mining and Givaudan 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 Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Givaudan.
Diversification Opportunities for AfriTin Mining and Givaudan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AfriTin and Givaudan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and Givaudan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA 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 Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and Givaudan go up and down completely randomly.
Pair Corralation between AfriTin Mining and Givaudan
Assuming the 90 days trading horizon AfriTin Mining is expected to under-perform the Givaudan. In addition to that, AfriTin Mining is 3.47 times more volatile than Givaudan SA. It trades about -0.28 of its total potential returns per unit of risk. Givaudan SA is currently generating about -0.24 per unit of volatility. If you would invest 419,500 in Givaudan SA on August 29, 2024 and sell it today you would lose (28,350) from holding Givaudan SA or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
AfriTin Mining vs. Givaudan SA
Performance |
| Timeline |
| AfriTin Mining |
| Givaudan SA |
AfriTin Mining and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and Givaudan
The main advantage of trading using opposite AfriTin Mining and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| AfriTin Mining vs. Atalaya Mining | AfriTin Mining vs. Anglo Asian Mining | AfriTin Mining vs. Metals Exploration Plc |
| Givaudan vs. Albion Technology General | Givaudan vs. Kaufman Et Broad | Givaudan vs. Pfeiffer Vacuum Technology | Givaudan vs. Take Two Interactive Software |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |