Correlation Between Chilwa Minerals and AiMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Chilwa Minerals and AiMedia Technologies 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 Chilwa Minerals and AiMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chilwa Minerals Limited and AiMedia Technologies, you can compare the effects of market volatilities on Chilwa Minerals and AiMedia Technologies 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 Chilwa Minerals with a short position of AiMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chilwa Minerals and AiMedia Technologies.
Diversification Opportunities for Chilwa Minerals and AiMedia Technologies
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chilwa and AiMedia is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Chilwa Minerals Limited and AiMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiMedia Technologies and Chilwa Minerals 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 Chilwa Minerals Limited are associated (or correlated) with AiMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiMedia Technologies has no effect on the direction of Chilwa Minerals i.e., Chilwa Minerals and AiMedia Technologies go up and down completely randomly.
Pair Corralation between Chilwa Minerals and AiMedia Technologies
Assuming the 90 days trading horizon Chilwa Minerals is expected to generate 1.73 times less return on investment than AiMedia Technologies. But when comparing it to its historical volatility, Chilwa Minerals Limited is 1.02 times less risky than AiMedia Technologies. It trades about 0.07 of its potential returns per unit of risk. AiMedia Technologies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 41.00 in AiMedia Technologies on November 3, 2024 and sell it today you would earn a total of 32.00 from holding AiMedia Technologies or generate 78.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chilwa Minerals Limited vs. AiMedia Technologies
Performance |
| Timeline |
| Chilwa Minerals |
| AiMedia Technologies |
Chilwa Minerals and AiMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chilwa Minerals and AiMedia Technologies
The main advantage of trading using opposite Chilwa Minerals and AiMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chilwa Minerals position performs unexpectedly, AiMedia Technologies 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 AiMedia Technologies will offset losses from the drop in AiMedia Technologies' long position.| Chilwa Minerals vs. MetalsGrove Mining | Chilwa Minerals vs. Argo Investments | Chilwa Minerals vs. Sayona Mining | Chilwa Minerals vs. Auctus Alternative Investments |
| AiMedia Technologies vs. Air New Zealand | AiMedia Technologies vs. Lykos Metals | AiMedia Technologies vs. Truscott Mining Corp | AiMedia Technologies vs. Aeon Metals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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