Correlation Between AfriTin Mining and Hiscox
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining and Hiscox 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 Hiscox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and Hiscox, you can compare the effects of market volatilities on AfriTin Mining and Hiscox 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 Hiscox. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Hiscox.
Diversification Opportunities for AfriTin Mining and Hiscox
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AfriTin and Hiscox is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and Hiscox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiscox 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 Hiscox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiscox has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and Hiscox go up and down completely randomly.
Pair Corralation between AfriTin Mining and Hiscox
Assuming the 90 days trading horizon AfriTin Mining is expected to generate 4.37 times more return on investment than Hiscox. However, AfriTin Mining is 4.37 times more volatile than Hiscox. It trades about 0.06 of its potential returns per unit of risk. Hiscox is currently generating about 0.04 per unit of risk. If you would invest 275.00 in AfriTin Mining on September 4, 2024 and sell it today you would earn a total of 11.00 from holding AfriTin Mining or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AfriTin Mining vs. Hiscox
Performance |
| Timeline |
| AfriTin Mining |
| Hiscox |
AfriTin Mining and Hiscox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and Hiscox
The main advantage of trading using opposite AfriTin Mining and Hiscox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining position performs unexpectedly, Hiscox 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 Hiscox will offset losses from the drop in Hiscox's long position.| AfriTin Mining vs. Antofagasta PLC | AfriTin Mining vs. Atalaya Mining | AfriTin Mining vs. Ferrexpo PLC | AfriTin Mining vs. Amaroq Minerals |
| Hiscox vs. Taylor Maritime Investments | Hiscox vs. MTI Wireless Edge | Hiscox vs. Fevertree Drinks Plc | Hiscox vs. Herald Investment Trust |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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