Correlation Between Amani Gold and JNC Resources
Can any of the company-specific risk be diversified away by investing in both Amani Gold and JNC 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 Amani Gold and JNC Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold Limited and JNC Resources, you can compare the effects of market volatilities on Amani Gold and JNC 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 Amani Gold with a short position of JNC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and JNC Resources.
Diversification Opportunities for Amani Gold and JNC Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and JNC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold Limited and JNC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNC Resources and Amani Gold 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 Amani Gold Limited are associated (or correlated) with JNC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNC Resources has no effect on the direction of Amani Gold i.e., Amani Gold and JNC Resources go up and down completely randomly.
Pair Corralation between Amani Gold and JNC Resources
If you would invest (100.00) in Amani Gold Limited on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Amani Gold Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amani Gold Limited vs. JNC Resources
Performance |
| Timeline |
| Amani Gold Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| JNC Resources |
Amani Gold and JNC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and JNC Resources
The main advantage of trading using opposite Amani Gold and JNC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, JNC 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 JNC Resources will offset losses from the drop in JNC Resources' long position.| Amani Gold vs. Antioquia Gold | Amani Gold vs. Asante Gold | Amani Gold vs. Big Ridge Gold | Amani Gold vs. Angus Gold |
| JNC Resources vs. Argo Gold | JNC Resources vs. Advance Gold Corp | JNC Resources vs. Blue Star Gold | JNC Resources vs. Minnova Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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