Correlation Between Beeks Trading and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and Anglo Asian 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 Beeks Trading and Anglo Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Anglo Asian Mining, you can compare the effects of market volatilities on Beeks Trading and Anglo Asian 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 Beeks Trading with a short position of Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and Anglo Asian.
Diversification Opportunities for Beeks Trading and Anglo Asian
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beeks and Anglo is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining and Beeks Trading 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 Beeks Trading are associated (or correlated) with Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Beeks Trading i.e., Beeks Trading and Anglo Asian go up and down completely randomly.
Pair Corralation between Beeks Trading and Anglo Asian
Assuming the 90 days trading horizon Beeks Trading is expected to generate 188.75 times less return on investment than Anglo Asian. But when comparing it to its historical volatility, Beeks Trading is 1.08 times less risky than Anglo Asian. It trades about 0.0 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,150 in Anglo Asian Mining on November 7, 2024 and sell it today you would earn a total of 750.00 from holding Anglo Asian Mining or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Beeks Trading vs. Anglo Asian Mining
Performance |
| Timeline |
| Beeks Trading |
| Anglo Asian Mining |
Beeks Trading and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and Anglo Asian
The main advantage of trading using opposite Beeks Trading and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Beeks Trading vs. United Utilities Group | Beeks Trading vs. Hilton Food Group | Beeks Trading vs. Edita Food Industries | Beeks Trading vs. Target Healthcare REIT |
| Anglo Asian vs. Silver Bullet Data | Anglo Asian vs. European Metals Holdings | Anglo Asian vs. Silvercorp Metals | Anglo Asian vs. Verizon Communications |
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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