Correlation Between Huntsman Exploration and Altura Mining
Can any of the company-specific risk be diversified away by investing in both Huntsman Exploration and Altura 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 Huntsman Exploration and Altura Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntsman Exploration and Altura Mining Limited, you can compare the effects of market volatilities on Huntsman Exploration and Altura 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 Huntsman Exploration with a short position of Altura Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntsman Exploration and Altura Mining.
Diversification Opportunities for Huntsman Exploration and Altura Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Huntsman and Altura is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Huntsman Exploration and Altura Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altura Mining Limited and Huntsman Exploration 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 Huntsman Exploration are associated (or correlated) with Altura Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altura Mining Limited has no effect on the direction of Huntsman Exploration i.e., Huntsman Exploration and Altura Mining go up and down completely randomly.
Pair Corralation between Huntsman Exploration and Altura Mining
Assuming the 90 days horizon Huntsman Exploration is expected to generate 1.2 times less return on investment than Altura Mining. In addition to that, Huntsman Exploration is 1.35 times more volatile than Altura Mining Limited. It trades about 0.14 of its total potential returns per unit of risk. Altura Mining Limited is currently generating about 0.23 per unit of volatility. If you would invest 1.20 in Altura Mining Limited on November 5, 2024 and sell it today you would earn a total of 1.10 from holding Altura Mining Limited or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Huntsman Exploration vs. Altura Mining Limited
Performance |
| Timeline |
| Huntsman Exploration |
| Altura Mining Limited |
Huntsman Exploration and Altura Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntsman Exploration and Altura Mining
The main advantage of trading using opposite Huntsman Exploration and Altura Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntsman Exploration position performs unexpectedly, Altura 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 Altura Mining will offset losses from the drop in Altura Mining's long position.| Huntsman Exploration vs. Hannan Metals | Huntsman Exploration vs. Atco Mining | Huntsman Exploration vs. Leading Edge Materials | Huntsman Exploration vs. Arianne Phosphate |
| Altura Mining vs. Aurelia Metals Limited | Altura Mining vs. Ascendant Resources | Altura Mining vs. Artemis Resources | Altura Mining vs. Azimut Exploration |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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