Correlation Between Dotdigital Group and Anglesey Mining
Can any of the company-specific risk be diversified away by investing in both Dotdigital Group and Anglesey Mining 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 Dotdigital Group and Anglesey Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dotdigital Group Plc and Anglesey Mining, you can compare the effects of market volatilities on Dotdigital Group and Anglesey Mining 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 Dotdigital Group with a short position of Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dotdigital Group and Anglesey Mining.
Diversification Opportunities for Dotdigital Group and Anglesey Mining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dotdigital and Anglesey is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dotdigital Group Plc and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining and Dotdigital Group 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 Dotdigital Group Plc are associated (or correlated) with Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of Dotdigital Group i.e., Dotdigital Group and Anglesey Mining go up and down completely randomly.
Pair Corralation between Dotdigital Group and Anglesey Mining
Assuming the 90 days trading horizon Dotdigital Group Plc is expected to under-perform the Anglesey Mining. But the stock apears to be less risky and, when comparing its historical volatility, Dotdigital Group Plc is 2.22 times less risky than Anglesey Mining. The stock trades about -0.18 of its potential returns per unit of risk. The Anglesey Mining is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 68.00 in Anglesey Mining on December 4, 2024 and sell it today you would earn a total of 22.00 from holding Anglesey Mining or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dotdigital Group Plc vs. Anglesey Mining
Performance |
| Timeline |
| Dotdigital Group Plc |
| Anglesey Mining |
Dotdigital Group and Anglesey Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dotdigital Group and Anglesey Mining
The main advantage of trading using opposite Dotdigital Group and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dotdigital Group position performs unexpectedly, Anglesey Mining 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 Anglesey Mining will offset losses from the drop in Anglesey Mining's long position.| Dotdigital Group vs. Alliance Data Systems | Dotdigital Group vs. Gaztransport et Technigaz | Dotdigital Group vs. Rosslyn Data Technologies | Dotdigital Group vs. Datalogic |
| Anglesey Mining vs. Leroy Seafood Group | Anglesey Mining vs. Infrastrutture Wireless Italiane | Anglesey Mining vs. Batm Advanced Communications | Anglesey Mining vs. Cairo Communication SpA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| 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 | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |