Correlation Between Chemours and AngloGold Ashanti
Can any of the company-specific risk be diversified away by investing in both Chemours and AngloGold Ashanti 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 Chemours and AngloGold Ashanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and AngloGold Ashanti plc, you can compare the effects of market volatilities on Chemours and AngloGold Ashanti 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 Chemours with a short position of AngloGold Ashanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and AngloGold Ashanti.
Diversification Opportunities for Chemours and AngloGold Ashanti
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chemours and AngloGold is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and AngloGold Ashanti plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngloGold Ashanti plc and Chemours 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 Chemours Co are associated (or correlated) with AngloGold Ashanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngloGold Ashanti plc has no effect on the direction of Chemours i.e., Chemours and AngloGold Ashanti go up and down completely randomly.
Pair Corralation between Chemours and AngloGold Ashanti
Allowing for the 90-day total investment horizon Chemours Co is expected to under-perform the AngloGold Ashanti. In addition to that, Chemours is 1.21 times more volatile than AngloGold Ashanti plc. It trades about -0.02 of its total potential returns per unit of risk. AngloGold Ashanti plc is currently generating about 0.02 per unit of volatility. If you would invest 2,449 in AngloGold Ashanti plc on August 28, 2024 and sell it today you would earn a total of 71.00 from holding AngloGold Ashanti plc or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. AngloGold Ashanti plc
Performance |
| Timeline |
| Chemours |
| AngloGold Ashanti plc |
Chemours and AngloGold Ashanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and AngloGold Ashanti
The main advantage of trading using opposite Chemours and AngloGold Ashanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, AngloGold Ashanti 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 AngloGold Ashanti will offset losses from the drop in AngloGold Ashanti's long position.| Chemours vs. Olin Corporation | Chemours vs. Cabot | Chemours vs. Kronos Worldwide | Chemours vs. LyondellBasell Industries NV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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