Correlation Between AfriTin Mining and First
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining and First 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 First into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and First Class Metals, you can compare the effects of market volatilities on AfriTin Mining and First 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 First. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and First.
Diversification Opportunities for AfriTin Mining and First
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between AfriTin and First is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and First Class Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Class Metals 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 First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Class Metals has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and First go up and down completely randomly.
Pair Corralation between AfriTin Mining and First
Assuming the 90 days trading horizon AfriTin Mining is expected to generate 1.14 times more return on investment than First. However, AfriTin Mining is 1.14 times more volatile than First Class Metals. It trades about 0.0 of its potential returns per unit of risk. First Class Metals is currently generating about -0.18 per unit of risk. If you would invest 230.00 in AfriTin Mining on October 26, 2024 and sell it today you would lose (7.00) from holding AfriTin Mining or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AfriTin Mining vs. First Class Metals
Performance |
| Timeline |
| AfriTin Mining |
| First Class Metals |
AfriTin Mining and First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and First
The main advantage of trading using opposite AfriTin Mining and First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining position performs unexpectedly, First 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 First will offset losses from the drop in First's long position.| AfriTin Mining vs. Concurrent Technologies Plc | AfriTin Mining vs. JPMorgan Japanese Investment | AfriTin Mining vs. Edinburgh Investment Trust | AfriTin Mining vs. SMA Solar 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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