Correlation Between AstraZeneca PLC and Beowulf Mining
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By analyzing existing cross correlation between AstraZeneca PLC and Beowulf Mining PLC, you can compare the effects of market volatilities on AstraZeneca PLC and Beowulf 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 AstraZeneca PLC with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstraZeneca PLC and Beowulf Mining.
Diversification Opportunities for AstraZeneca PLC and Beowulf Mining
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AstraZeneca and Beowulf is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AstraZeneca PLC and Beowulf Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining PLC and AstraZeneca PLC 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 AstraZeneca PLC are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining PLC has no effect on the direction of AstraZeneca PLC i.e., AstraZeneca PLC and Beowulf Mining go up and down completely randomly.
Pair Corralation between AstraZeneca PLC and Beowulf Mining
Assuming the 90 days trading horizon AstraZeneca PLC is expected to generate 72.68 times less return on investment than Beowulf Mining. But when comparing it to its historical volatility, AstraZeneca PLC is 33.78 times less risky than Beowulf Mining. It trades about 0.02 of its potential returns per unit of risk. Beowulf Mining PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 57.00 in Beowulf Mining PLC on August 25, 2024 and sell it today you would earn a total of 173.00 from holding Beowulf Mining PLC or generate 303.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AstraZeneca PLC vs. Beowulf Mining PLC
Performance |
| Timeline |
| AstraZeneca PLC |
| Beowulf Mining PLC |
AstraZeneca PLC and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstraZeneca PLC and Beowulf Mining
The main advantage of trading using opposite AstraZeneca PLC and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstraZeneca PLC position performs unexpectedly, Beowulf 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| AstraZeneca PLC vs. AB Volvo | AstraZeneca PLC vs. Telefonaktiebolaget LM Ericsson | AstraZeneca PLC vs. H M Hennes | AstraZeneca PLC vs. Investor AB ser |
| Beowulf Mining vs. Lohilo Foods AB | Beowulf Mining vs. Raketech Group Holding | Beowulf Mining vs. Avanza Bank Holding | Beowulf Mining vs. Maven Wireless Sweden |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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