Correlation Between Dairy Farm and Antofagasta PLC
Can any of the company-specific risk be diversified away by investing in both Dairy Farm and Antofagasta PLC 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 Dairy Farm and Antofagasta PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dairy Farm International and Antofagasta PLC, you can compare the effects of market volatilities on Dairy Farm and Antofagasta PLC 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 Dairy Farm with a short position of Antofagasta PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dairy Farm and Antofagasta PLC.
Diversification Opportunities for Dairy Farm and Antofagasta PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dairy and Antofagasta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dairy Farm International and Antofagasta PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antofagasta PLC and Dairy Farm 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 Dairy Farm International are associated (or correlated) with Antofagasta PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antofagasta PLC has no effect on the direction of Dairy Farm i.e., Dairy Farm and Antofagasta PLC go up and down completely randomly.
Pair Corralation between Dairy Farm and Antofagasta PLC
If you would invest 171,125 in Antofagasta PLC on November 2, 2024 and sell it today you would earn a total of 3,375 from holding Antofagasta PLC or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dairy Farm International vs. Antofagasta PLC
Performance |
| Timeline |
| Dairy Farm International |
| Antofagasta PLC |
Dairy Farm and Antofagasta PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dairy Farm and Antofagasta PLC
The main advantage of trading using opposite Dairy Farm and Antofagasta PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dairy Farm position performs unexpectedly, Antofagasta PLC 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 Antofagasta PLC will offset losses from the drop in Antofagasta PLC's long position.| Dairy Farm vs. Gaztransport et Technigaz | Dairy Farm vs. Morgan Advanced Materials | Dairy Farm vs. Westlake Chemical Corp | Dairy Farm vs. Air Products Chemicals |
| Antofagasta PLC vs. Europa Metals | Antofagasta PLC vs. AMG Advanced Metallurgical | Antofagasta PLC vs. GreenX Metals | Antofagasta PLC vs. Gaztransport et Technigaz |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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