Correlation Between Antofagasta Plc and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both Antofagasta Plc and Aurubis AG 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 Aurubis AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta plc and Aurubis AG, you can compare the effects of market volatilities on Antofagasta Plc and Aurubis AG 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 Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta Plc and Aurubis AG.
Diversification Opportunities for Antofagasta Plc and Aurubis AG
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Antofagasta and Aurubis is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta plc and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG 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 Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of Antofagasta Plc i.e., Antofagasta Plc and Aurubis AG go up and down completely randomly.
Pair Corralation between Antofagasta Plc and Aurubis AG
Assuming the 90 days horizon Antofagasta plc is expected to generate 1.07 times more return on investment than Aurubis AG. However, Antofagasta Plc is 1.07 times more volatile than Aurubis AG. It trades about 0.12 of its potential returns per unit of risk. Aurubis AG is currently generating about -0.04 per unit of risk. If you would invest 1,938 in Antofagasta plc on November 2, 2024 and sell it today you would earn a total of 90.00 from holding Antofagasta plc or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Antofagasta plc vs. Aurubis AG
Performance |
| Timeline |
| Antofagasta plc |
| Aurubis AG |
Antofagasta Plc and Aurubis AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta Plc and Aurubis AG
The main advantage of trading using opposite Antofagasta Plc and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta Plc position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG'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 |
| Aurubis AG vs. Freeport McMoRan | Aurubis AG vs. Southern Copper | Aurubis AG vs. First Quantum Minerals | Aurubis AG vs. Lundin 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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