Correlation Between Caledonia Mining and Athelney Trust
Can any of the company-specific risk be diversified away by investing in both Caledonia Mining and Athelney Trust 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 Caledonia Mining and Athelney Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caledonia Mining and Athelney Trust plc, you can compare the effects of market volatilities on Caledonia Mining and Athelney Trust 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 Caledonia Mining with a short position of Athelney Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caledonia Mining and Athelney Trust.
Diversification Opportunities for Caledonia Mining and Athelney Trust
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caledonia and Athelney is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Caledonia Mining and Athelney Trust plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athelney Trust plc and Caledonia Mining 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 Caledonia Mining are associated (or correlated) with Athelney Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athelney Trust plc has no effect on the direction of Caledonia Mining i.e., Caledonia Mining and Athelney Trust go up and down completely randomly.
Pair Corralation between Caledonia Mining and Athelney Trust
Assuming the 90 days trading horizon Caledonia Mining is expected to under-perform the Athelney Trust. In addition to that, Caledonia Mining is 2.16 times more volatile than Athelney Trust plc. It trades about -0.01 of its total potential returns per unit of risk. Athelney Trust plc is currently generating about -0.01 per unit of volatility. If you would invest 18,252 in Athelney Trust plc on August 31, 2024 and sell it today you would lose (752.00) from holding Athelney Trust plc or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Caledonia Mining vs. Athelney Trust plc
Performance |
| Timeline |
| Caledonia Mining |
| Athelney Trust plc |
Caledonia Mining and Athelney Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caledonia Mining and Athelney Trust
The main advantage of trading using opposite Caledonia Mining and Athelney Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caledonia Mining position performs unexpectedly, Athelney Trust 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 Athelney Trust will offset losses from the drop in Athelney Trust's long position.| Caledonia Mining vs. Hollywood Bowl Group | Caledonia Mining vs. XLMedia PLC | Caledonia Mining vs. Grand Vision Media | Caledonia Mining vs. Atresmedia |
| Athelney Trust vs. Advanced Medical Solutions | Athelney Trust vs. Caledonia Mining | Athelney Trust vs. Hochschild Mining plc | Athelney Trust vs. Air Products Chemicals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |