Correlation Between Anglesey Mining and Monks Investment
Can any of the company-specific risk be diversified away by investing in both Anglesey Mining and Monks Investment 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 Monks Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglesey Mining and Monks Investment Trust, you can compare the effects of market volatilities on Anglesey Mining and Monks Investment 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 Monks Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglesey Mining and Monks Investment.
Diversification Opportunities for Anglesey Mining and Monks Investment
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anglesey and Monks is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Anglesey Mining and Monks Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monks Investment Trust 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 Monks Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monks Investment Trust has no effect on the direction of Anglesey Mining i.e., Anglesey Mining and Monks Investment go up and down completely randomly.
Pair Corralation between Anglesey Mining and Monks Investment
Assuming the 90 days trading horizon Anglesey Mining is expected to under-perform the Monks Investment. In addition to that, Anglesey Mining is 4.38 times more volatile than Monks Investment Trust. It trades about -0.09 of its total potential returns per unit of risk. Monks Investment Trust is currently generating about 0.19 per unit of volatility. If you would invest 115,400 in Monks Investment Trust on August 28, 2024 and sell it today you would earn a total of 13,000 from holding Monks Investment Trust or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglesey Mining vs. Monks Investment Trust
Performance |
| Timeline |
| Anglesey Mining |
| Monks Investment Trust |
Anglesey Mining and Monks Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglesey Mining and Monks Investment
The main advantage of trading using opposite Anglesey Mining and Monks Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglesey Mining position performs unexpectedly, Monks Investment 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 Monks Investment will offset losses from the drop in Monks Investment's long position.| Anglesey Mining vs. Givaudan SA | Anglesey Mining vs. Antofagasta PLC | Anglesey Mining vs. Centamin PLC | Anglesey Mining vs. Atalaya Mining |
| Monks Investment vs. Hochschild Mining plc | Monks Investment vs. Bisichi Mining PLC | Monks Investment vs. Anglesey Mining | Monks Investment vs. International Biotechnology Trust |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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