Correlation Between Anglesey Mining and Ceres Power
Can any of the company-specific risk be diversified away by investing in both Anglesey Mining and Ceres Power 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 Anglesey Mining and Ceres Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglesey Mining and Ceres Power Holdings, you can compare the effects of market volatilities on Anglesey Mining and Ceres Power 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 Anglesey Mining with a short position of Ceres Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglesey Mining and Ceres Power.
Diversification Opportunities for Anglesey Mining and Ceres Power
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anglesey and Ceres is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Anglesey Mining and Ceres Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceres Power Holdings and Anglesey 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 Anglesey Mining are associated (or correlated) with Ceres Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceres Power Holdings has no effect on the direction of Anglesey Mining i.e., Anglesey Mining and Ceres Power go up and down completely randomly.
Pair Corralation between Anglesey Mining and Ceres Power
Assuming the 90 days trading horizon Anglesey Mining is expected to generate 0.75 times more return on investment than Ceres Power. However, Anglesey Mining is 1.34 times less risky than Ceres Power. It trades about -0.19 of its potential returns per unit of risk. Ceres Power Holdings is currently generating about -0.3 per unit of risk. If you would invest 112.00 in Anglesey Mining on September 13, 2024 and sell it today you would lose (19.00) from holding Anglesey Mining or give up 16.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Anglesey Mining vs. Ceres Power Holdings
Performance |
| Timeline |
| Anglesey Mining |
| Ceres Power Holdings |
Anglesey Mining and Ceres Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglesey Mining and Ceres Power
The main advantage of trading using opposite Anglesey Mining and Ceres Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglesey Mining position performs unexpectedly, Ceres Power 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 Ceres Power will offset losses from the drop in Ceres Power's long position.| Anglesey Mining vs. Givaudan SA | Anglesey Mining vs. Antofagasta PLC | Anglesey Mining vs. Ferrexpo PLC | Anglesey Mining vs. Atalaya Mining |
| Ceres Power vs. Viridian Therapeutics | Ceres Power vs. CVR Energy | Ceres Power vs. Nationwide Building Society | Ceres Power vs. Dollar Tree |
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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