Correlation Between Amani Gold and Sokoman Minerals
Can any of the company-specific risk be diversified away by investing in both Amani Gold and Sokoman Minerals 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 Sokoman Minerals 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 Sokoman Minerals Corp, you can compare the effects of market volatilities on Amani Gold and Sokoman Minerals 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 Sokoman Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Sokoman Minerals.
Diversification Opportunities for Amani Gold and Sokoman Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and Sokoman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold Limited and Sokoman Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sokoman Minerals Corp 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 Sokoman Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sokoman Minerals Corp has no effect on the direction of Amani Gold i.e., Amani Gold and Sokoman Minerals go up and down completely randomly.
Pair Corralation between Amani Gold and Sokoman Minerals
If you would invest 0.01 in Amani Gold Limited on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Amani Gold Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Amani Gold Limited vs. Sokoman Minerals Corp
Performance |
| Timeline |
| Amani Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sokoman Minerals Corp |
Amani Gold and Sokoman Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Sokoman Minerals
The main advantage of trading using opposite Amani Gold and Sokoman Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, Sokoman Minerals 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 Sokoman Minerals will offset losses from the drop in Sokoman Minerals' long position.| Amani Gold vs. Antioquia Gold | Amani Gold vs. Asante Gold | Amani Gold vs. Bluestone Resources | Amani Gold vs. Big Ridge Gold |
| Sokoman Minerals vs. Irving Resources | Sokoman Minerals vs. Lion One Metals | Sokoman Minerals vs. Exploits Discovery Corp | Sokoman Minerals vs. Gander Gold |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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