Correlation Between AfriTin Mining and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining and Liontrust Asset 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 Liontrust Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and Liontrust Asset Management, you can compare the effects of market volatilities on AfriTin Mining and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Liontrust Asset.
Diversification Opportunities for AfriTin Mining and Liontrust Asset
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AfriTin and Liontrust is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and Liontrust Asset go up and down completely randomly.
Pair Corralation between AfriTin Mining and Liontrust Asset
Assuming the 90 days trading horizon AfriTin Mining is expected to under-perform the Liontrust Asset. In addition to that, AfriTin Mining is 2.79 times more volatile than Liontrust Asset Management. It trades about -0.04 of its total potential returns per unit of risk. Liontrust Asset Management is currently generating about 0.05 per unit of volatility. If you would invest 44,962 in Liontrust Asset Management on September 25, 2024 and sell it today you would earn a total of 738.00 from holding Liontrust Asset Management or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AfriTin Mining vs. Liontrust Asset Management
Performance |
| Timeline |
| AfriTin Mining |
| Liontrust Asset Mana |
AfriTin Mining and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and Liontrust Asset
The main advantage of trading using opposite AfriTin Mining and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| AfriTin Mining vs. Givaudan SA | AfriTin Mining vs. Antofagasta PLC | AfriTin Mining vs. Ferrexpo PLC | AfriTin Mining vs. Atalaya Mining |
| Liontrust Asset vs. Cembra Money Bank | Liontrust Asset vs. CleanTech Lithium plc | Liontrust Asset vs. AfriTin Mining | Liontrust Asset vs. OneSavings Bank 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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