Correlation Between De Grey and ANGLO ASIAN
Can any of the company-specific risk be diversified away by investing in both De Grey and ANGLO ASIAN 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 De Grey and ANGLO ASIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Grey Mining and ANGLO ASIAN MINING, you can compare the effects of market volatilities on De Grey and ANGLO ASIAN 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 De Grey with a short position of ANGLO ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Grey and ANGLO ASIAN.
Diversification Opportunities for De Grey and ANGLO ASIAN
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DGD and ANGLO is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding De Grey Mining and ANGLO ASIAN MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLO ASIAN MINING and De Grey 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 De Grey Mining are associated (or correlated) with ANGLO ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLO ASIAN MINING has no effect on the direction of De Grey i.e., De Grey and ANGLO ASIAN go up and down completely randomly.
Pair Corralation between De Grey and ANGLO ASIAN
Assuming the 90 days trading horizon De Grey Mining is expected to generate 0.78 times more return on investment than ANGLO ASIAN. However, De Grey Mining is 1.29 times less risky than ANGLO ASIAN. It trades about 0.26 of its potential returns per unit of risk. ANGLO ASIAN MINING is currently generating about 0.1 per unit of risk. If you would invest 107.00 in De Grey Mining on November 4, 2024 and sell it today you would earn a total of 12.00 from holding De Grey Mining or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Grey Mining vs. ANGLO ASIAN MINING
Performance |
| Timeline |
| De Grey Mining |
| ANGLO ASIAN MINING |
De Grey and ANGLO ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Grey and ANGLO ASIAN
The main advantage of trading using opposite De Grey and ANGLO ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Grey position performs unexpectedly, ANGLO ASIAN 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 ANGLO ASIAN will offset losses from the drop in ANGLO ASIAN's long position.| De Grey vs. International Consolidated Airlines | De Grey vs. PLAYSTUDIOS A DL 0001 | De Grey vs. Southwest Airlines Co | De Grey vs. Gol Intelligent Airlines |
| ANGLO ASIAN vs. United Natural Foods | ANGLO ASIAN vs. PROSIEBENSAT1 MEDIADR4 | ANGLO ASIAN vs. NH Foods | ANGLO ASIAN vs. Hollywood Bowl Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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