Correlation Between Centaurus Metals and Accent Resources
Can any of the company-specific risk be diversified away by investing in both Centaurus Metals and Accent Resources 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 Centaurus Metals and Accent Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaurus Metals and Accent Resources NL, you can compare the effects of market volatilities on Centaurus Metals and Accent Resources 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 Centaurus Metals with a short position of Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaurus Metals and Accent Resources.
Diversification Opportunities for Centaurus Metals and Accent Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centaurus and Accent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Centaurus Metals and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources and Centaurus Metals 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 Centaurus Metals are associated (or correlated) with Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Centaurus Metals i.e., Centaurus Metals and Accent Resources go up and down completely randomly.
Pair Corralation between Centaurus Metals and Accent Resources
Assuming the 90 days trading horizon Centaurus Metals is expected to generate 1.28 times more return on investment than Accent Resources. However, Centaurus Metals is 1.28 times more volatile than Accent Resources NL. It trades about 0.01 of its potential returns per unit of risk. Accent Resources NL is currently generating about -0.01 per unit of risk. If you would invest 48.00 in Centaurus Metals on September 2, 2024 and sell it today you would lose (7.00) from holding Centaurus Metals or give up 14.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaurus Metals vs. Accent Resources NL
Performance |
| Timeline |
| Centaurus Metals |
| Accent Resources |
Centaurus Metals and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaurus Metals and Accent Resources
The main advantage of trading using opposite Centaurus Metals and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaurus Metals position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| Centaurus Metals vs. Northern Star Resources | Centaurus Metals vs. Evolution Mining | Centaurus Metals vs. Bluescope Steel | Centaurus Metals vs. Sandfire Resources NL |
| Accent Resources vs. Talisman Mining | Accent Resources vs. Metro Mining | Accent Resources vs. Aurelia Metals | Accent Resources vs. Perseus Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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