Correlation Between A1 Investments and Metro Mining
Can any of the company-specific risk be diversified away by investing in both A1 Investments and Metro 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 A1 Investments and Metro Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A1 Investments Resources and Metro Mining, you can compare the effects of market volatilities on A1 Investments and Metro 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 A1 Investments with a short position of Metro Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of A1 Investments and Metro Mining.
Diversification Opportunities for A1 Investments and Metro Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AYI and Metro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding A1 Investments Resources and Metro Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Mining and A1 Investments 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 A1 Investments Resources are associated (or correlated) with Metro Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Mining has no effect on the direction of A1 Investments i.e., A1 Investments and Metro Mining go up and down completely randomly.
Pair Corralation between A1 Investments and Metro Mining
Assuming the 90 days trading horizon A1 Investments is expected to generate 4.2 times less return on investment than Metro Mining. But when comparing it to its historical volatility, A1 Investments Resources is 1.03 times less risky than Metro Mining. It trades about 0.02 of its potential returns per unit of risk. Metro Mining is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Metro Mining on September 3, 2024 and sell it today you would earn a total of 4.80 from holding Metro Mining or generate 320.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
A1 Investments Resources vs. Metro Mining
Performance |
| Timeline |
| A1 Investments Resources |
| Metro Mining |
A1 Investments and Metro Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A1 Investments and Metro Mining
The main advantage of trading using opposite A1 Investments and Metro Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A1 Investments position performs unexpectedly, Metro 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 Metro Mining will offset losses from the drop in Metro Mining's long position.| A1 Investments vs. Audio Pixels Holdings | A1 Investments vs. Iodm | A1 Investments vs. Nsx | A1 Investments vs. TTG Fintech |
| Metro Mining vs. Northern Star Resources | Metro Mining vs. Evolution Mining | Metro Mining vs. Bluescope Steel | Metro Mining vs. Aneka Tambang Tbk |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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