Correlation Between AngloGold Ashanti and SSR Mining
Can any of the company-specific risk be diversified away by investing in both AngloGold Ashanti and SSR Mining 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 SSR Mining 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 SSR Mining, you can compare the effects of market volatilities on AngloGold Ashanti and SSR Mining 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngloGold Ashanti and SSR Mining.
Diversification Opportunities for AngloGold Ashanti and SSR Mining
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between AngloGold and SSR is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding AngloGold Ashanti plc and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of AngloGold Ashanti i.e., AngloGold Ashanti and SSR Mining go up and down completely randomly.
Pair Corralation between AngloGold Ashanti and SSR Mining
Allowing for the 90-day total investment horizon AngloGold Ashanti plc is expected to generate 0.96 times more return on investment than SSR Mining. However, AngloGold Ashanti plc is 1.04 times less risky than SSR Mining. It trades about 0.37 of its potential returns per unit of risk. SSR Mining is currently generating about 0.22 per unit of risk. If you would invest 2,326 in AngloGold Ashanti plc on October 20, 2024 and sell it today you would earn a total of 403.00 from holding AngloGold Ashanti plc or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
AngloGold Ashanti plc vs. SSR Mining
Performance |
| Timeline |
| AngloGold Ashanti plc |
| SSR Mining |
AngloGold Ashanti and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AngloGold Ashanti and SSR Mining
The main advantage of trading using opposite AngloGold Ashanti and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngloGold Ashanti position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining's 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 |
| SSR Mining vs. Centerra Gold | SSR Mining vs. Gold Fields Ltd | SSR Mining vs. Eldorado Gold Corp | SSR Mining vs. Osisko Gold Ro |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |