Correlation Between Amani Gold and Nine Mile
Can any of the company-specific risk be diversified away by investing in both Amani Gold and Nine Mile 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 Nine Mile 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 Nine Mile Metals, you can compare the effects of market volatilities on Amani Gold and Nine Mile 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 Nine Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Nine Mile.
Diversification Opportunities for Amani Gold and Nine Mile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and Nine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold Limited and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile Metals 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 Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of Amani Gold i.e., Amani Gold and Nine Mile go up and down completely randomly.
Pair Corralation between Amani Gold and Nine Mile
If you would invest 0.01 in Amani Gold Limited on November 4, 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. Nine Mile Metals
Performance |
| Timeline |
| Amani Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nine Mile Metals |
Amani Gold and Nine Mile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Nine Mile
The main advantage of trading using opposite Amani Gold and Nine Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, Nine Mile 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 Nine Mile will offset losses from the drop in Nine Mile's long position.| Amani Gold vs. Antioquia Gold | Amani Gold vs. Asante Gold | Amani Gold vs. Bluestone Resources | Amani Gold vs. Big Ridge Gold |
| Nine Mile vs. Endurance Gold | Nine Mile vs. Red Pine Exploration | Nine Mile vs. Altamira Gold Corp | Nine Mile vs. Grande Portage 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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