Correlation Between AngloGold Ashanti and TD Holdings
Can any of the company-specific risk be diversified away by investing in both AngloGold Ashanti and TD Holdings 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 AngloGold Ashanti and TD Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AngloGold Ashanti plc and TD Holdings, you can compare the effects of market volatilities on AngloGold Ashanti and TD Holdings 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 AngloGold Ashanti with a short position of TD Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngloGold Ashanti and TD Holdings.
Diversification Opportunities for AngloGold Ashanti and TD Holdings
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AngloGold and GLG is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AngloGold Ashanti plc and TD Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Holdings and AngloGold Ashanti 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 AngloGold Ashanti plc are associated (or correlated) with TD Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Holdings has no effect on the direction of AngloGold Ashanti i.e., AngloGold Ashanti and TD Holdings go up and down completely randomly.
Pair Corralation between AngloGold Ashanti and TD Holdings
Allowing for the 90-day total investment horizon AngloGold Ashanti plc is expected to generate 0.77 times more return on investment than TD Holdings. However, AngloGold Ashanti plc is 1.3 times less risky than TD Holdings. It trades about 0.05 of its potential returns per unit of risk. TD Holdings is currently generating about -0.18 per unit of risk. If you would invest 1,904 in AngloGold Ashanti plc on November 2, 2024 and sell it today you would earn a total of 1,117 from holding AngloGold Ashanti plc or generate 58.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.67% |
| Values | Daily Returns |
AngloGold Ashanti plc vs. TD Holdings
Performance |
| Timeline |
| AngloGold Ashanti plc |
| TD Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AngloGold Ashanti and TD Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AngloGold Ashanti and TD Holdings
The main advantage of trading using opposite AngloGold Ashanti and TD Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngloGold Ashanti position performs unexpectedly, TD Holdings 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 TD Holdings will offset losses from the drop in TD Holdings' long position.| AngloGold Ashanti vs. Harmony Gold Mining | AngloGold Ashanti vs. Eldorado Gold Corp | AngloGold Ashanti vs. Kinross Gold | AngloGold Ashanti vs. Pan American Silver |
| TD Holdings vs. Vizsla Resources Corp | TD Holdings vs. Western Copper and | TD Holdings vs. Americas Silver Corp | TD Holdings vs. EMX Royalty Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |