Correlation Between Cboe UK and Anglo Asian
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By analyzing existing cross correlation between Cboe UK Consumer and Anglo Asian Mining, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Anglo Asian.
Diversification Opportunities for Cboe UK and Anglo Asian
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cboe and Anglo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer 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 Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Anglo Asian go up and down completely randomly.
Pair Corralation between Cboe UK and Anglo Asian
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.36 times more return on investment than Anglo Asian. However, Cboe UK Consumer is 2.75 times less risky than Anglo Asian. It trades about 0.41 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about -0.2 per unit of risk. If you would invest 2,934,295 in Cboe UK Consumer on August 25, 2024 and sell it today you would earn a total of 288,421 from holding Cboe UK Consumer or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Anglo Asian Mining
Performance |
| Timeline |
Cboe UK and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Anglo Asian Mining
Pair trading matchups for Anglo Asian
Pair Trading with Cboe UK and Anglo Asian
The main advantage of trading using opposite Cboe UK and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. FC Investment Trust | Cboe UK vs. Blackrock World Mining | Cboe UK vs. Kinnevik Investment AB | Cboe UK vs. The Mercantile Investment |
| Anglo Asian vs. Sealed Air Corp | Anglo Asian vs. MTI Wireless Edge | Anglo Asian vs. Ryanair Holdings plc | Anglo Asian vs. Virgin Wines UK |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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