Correlation Between Cornish Metals and Abingdon Health
Can any of the company-specific risk be diversified away by investing in both Cornish Metals and Abingdon Health 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 Cornish Metals and Abingdon Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cornish Metals and Abingdon Health Plc, you can compare the effects of market volatilities on Cornish Metals and Abingdon Health 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 Cornish Metals with a short position of Abingdon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornish Metals and Abingdon Health.
Diversification Opportunities for Cornish Metals and Abingdon Health
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cornish and Abingdon is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cornish Metals and Abingdon Health Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abingdon Health Plc and Cornish 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 Cornish Metals are associated (or correlated) with Abingdon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abingdon Health Plc has no effect on the direction of Cornish Metals i.e., Cornish Metals and Abingdon Health go up and down completely randomly.
Pair Corralation between Cornish Metals and Abingdon Health
Assuming the 90 days trading horizon Cornish Metals is expected to under-perform the Abingdon Health. In addition to that, Cornish Metals is 2.05 times more volatile than Abingdon Health Plc. It trades about -0.11 of its total potential returns per unit of risk. Abingdon Health Plc is currently generating about -0.21 per unit of volatility. If you would invest 775.00 in Abingdon Health Plc on September 2, 2024 and sell it today you would lose (75.00) from holding Abingdon Health Plc or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cornish Metals vs. Abingdon Health Plc
Performance |
| Timeline |
| Cornish Metals |
| Abingdon Health Plc |
Cornish Metals and Abingdon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cornish Metals and Abingdon Health
The main advantage of trading using opposite Cornish Metals and Abingdon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornish Metals position performs unexpectedly, Abingdon Health 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 Abingdon Health will offset losses from the drop in Abingdon Health's long position.| Cornish Metals vs. Givaudan SA | Cornish Metals vs. Antofagasta PLC | Cornish Metals vs. Centamin PLC | Cornish Metals vs. Atalaya Mining |
| Abingdon Health vs. McEwen Mining | Abingdon Health vs. Dentsply Sirona | Abingdon Health vs. Baker Steel Resources | Abingdon Health vs. Blackrock World 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |