Correlation Between Benton Resources and Alphamin Resources
Can any of the company-specific risk be diversified away by investing in both Benton Resources and Alphamin 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 Benton Resources and Alphamin Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benton Resources and Alphamin Resources Corp, you can compare the effects of market volatilities on Benton Resources and Alphamin 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 Benton Resources with a short position of Alphamin Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benton Resources and Alphamin Resources.
Diversification Opportunities for Benton Resources and Alphamin Resources
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Benton and Alphamin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Benton Resources and Alphamin Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphamin Resources Corp and Benton Resources 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 Benton Resources are associated (or correlated) with Alphamin Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphamin Resources Corp has no effect on the direction of Benton Resources i.e., Benton Resources and Alphamin Resources go up and down completely randomly.
Pair Corralation between Benton Resources and Alphamin Resources
Assuming the 90 days horizon Benton Resources is expected to generate 5.25 times more return on investment than Alphamin Resources. However, Benton Resources is 5.25 times more volatile than Alphamin Resources Corp. It trades about 0.12 of its potential returns per unit of risk. Alphamin Resources Corp is currently generating about -0.32 per unit of risk. If you would invest 4.82 in Benton Resources on November 4, 2024 and sell it today you would earn a total of 0.54 from holding Benton Resources or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benton Resources vs. Alphamin Resources Corp
Performance |
| Timeline |
| Benton Resources |
| Alphamin Resources Corp |
Benton Resources and Alphamin Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benton Resources and Alphamin Resources
The main advantage of trading using opposite Benton Resources and Alphamin Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benton Resources position performs unexpectedly, Alphamin 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 Alphamin Resources will offset losses from the drop in Alphamin Resources' long position.| Benton Resources vs. Piedmont Lithium Ltd | Benton Resources vs. Sigma Lithium Resources | Benton Resources vs. Standard Lithium | Benton Resources vs. MP Materials Corp |
| Alphamin Resources vs. NGEx Minerals | Alphamin Resources vs. Metals X Limited | Alphamin Resources vs. Minsud Resources Corp | Alphamin Resources vs. Aldebaran Resources |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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