Correlation Between Antofagasta Plc and KGHM Polska
Can any of the company-specific risk be diversified away by investing in both Antofagasta Plc and KGHM Polska 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 Antofagasta Plc and KGHM Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta plc and KGHM Polska Miedz, you can compare the effects of market volatilities on Antofagasta Plc and KGHM Polska 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 Antofagasta Plc with a short position of KGHM Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta Plc and KGHM Polska.
Diversification Opportunities for Antofagasta Plc and KGHM Polska
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Antofagasta and KGHM is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta plc and KGHM Polska Miedz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGHM Polska Miedz and Antofagasta Plc 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 Antofagasta plc are associated (or correlated) with KGHM Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGHM Polska Miedz has no effect on the direction of Antofagasta Plc i.e., Antofagasta Plc and KGHM Polska go up and down completely randomly.
Pair Corralation between Antofagasta Plc and KGHM Polska
If you would invest 3,092 in KGHM Polska Miedz on November 2, 2024 and sell it today you would lose (52.00) from holding KGHM Polska Miedz or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.97% |
| Values | Daily Returns |
Antofagasta plc vs. KGHM Polska Miedz
Performance |
| Timeline |
| Antofagasta plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KGHM Polska Miedz |
Antofagasta Plc and KGHM Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta Plc and KGHM Polska
The main advantage of trading using opposite Antofagasta Plc and KGHM Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta Plc position performs unexpectedly, KGHM Polska 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 KGHM Polska will offset losses from the drop in KGHM Polska's long position.| Antofagasta Plc vs. BlueScope Steel Limited | Antofagasta Plc vs. GEAR4MUSIC LS 10 | Antofagasta Plc vs. Carsales | Antofagasta Plc vs. Xiwang Special Steel |
| KGHM Polska vs. Safety Insurance Group | KGHM Polska vs. Prosiebensat 1 Media | KGHM Polska vs. SQUIRREL MEDIA SA | KGHM Polska vs. HANOVER INSURANCE |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |