Correlation Between Huntsman Exploration and Anson Resources
Can any of the company-specific risk be diversified away by investing in both Huntsman Exploration and Anson Resources 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 Anson Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntsman Exploration and Anson Resources Limited, you can compare the effects of market volatilities on Huntsman Exploration and Anson Resources 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 Anson Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntsman Exploration and Anson Resources.
Diversification Opportunities for Huntsman Exploration and Anson Resources
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huntsman and Anson is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Huntsman Exploration and Anson Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anson Resources 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 Anson Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anson Resources has no effect on the direction of Huntsman Exploration i.e., Huntsman Exploration and Anson Resources go up and down completely randomly.
Pair Corralation between Huntsman Exploration and Anson Resources
Assuming the 90 days horizon Huntsman Exploration is expected to generate 1.02 times less return on investment than Anson Resources. In addition to that, Huntsman Exploration is 1.19 times more volatile than Anson Resources Limited. It trades about 0.11 of its total potential returns per unit of risk. Anson Resources Limited is currently generating about 0.13 per unit of volatility. If you would invest 3.13 in Anson Resources Limited on December 1, 2024 and sell it today you would earn a total of 0.87 from holding Anson Resources Limited or generate 27.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Huntsman Exploration vs. Anson Resources Limited
Performance |
| Timeline |
| Huntsman Exploration |
| Anson Resources |
Huntsman Exploration and Anson Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntsman Exploration and Anson Resources
The main advantage of trading using opposite Huntsman Exploration and Anson Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntsman Exploration position performs unexpectedly, Anson Resources 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 Anson Resources will offset losses from the drop in Anson Resources' long position.| Huntsman Exploration vs. Aurelia Metals Limited | Huntsman Exploration vs. Adriatic Metals PLC | Huntsman Exploration vs. American Helium | Huntsman Exploration vs. Progressive Planet Solutions |
| Anson Resources vs. Edison Cobalt Corp | Anson Resources vs. Champion Bear Resources | Anson Resources vs. Avarone Metals | Anson Resources vs. Adriatic Metals PLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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