Correlation Between Advance United and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Advance United and Antilles Gold 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 Advance United and Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advance United Holdings and Antilles Gold Limited, you can compare the effects of market volatilities on Advance United and Antilles Gold 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 Advance United with a short position of Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance United and Antilles Gold.
Diversification Opportunities for Advance United and Antilles Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advance and Antilles is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advance United Holdings and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited and Advance United 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 Advance United Holdings are associated (or correlated) with Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Advance United i.e., Advance United and Antilles Gold go up and down completely randomly.
Pair Corralation between Advance United and Antilles Gold
If you would invest 0.12 in Antilles Gold Limited on November 4, 2024 and sell it today you would earn a total of 0.16 from holding Antilles Gold Limited or generate 133.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Advance United Holdings vs. Antilles Gold Limited
Performance |
| Timeline |
| Advance United Holdings |
| Antilles Gold Limited |
Advance United and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advance United and Antilles Gold
The main advantage of trading using opposite Advance United and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance United position performs unexpectedly, Antilles Gold 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| Advance United vs. Argo Gold | Advance United vs. Blue Star Gold | Advance United vs. Angkor Resources Corp | Advance United vs. Advance Gold Corp |
| Antilles Gold vs. Antioquia Gold | Antilles Gold vs. Asante Gold | Antilles Gold vs. Allegiant Gold | Antilles Gold vs. Big Ridge Gold |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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