Correlation Between FAN MILK and ANGLOGOLD ASHANTI
Can any of the company-specific risk be diversified away by investing in both FAN MILK and ANGLOGOLD ASHANTI 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 FAN MILK and ANGLOGOLD ASHANTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAN MILK LTD and ANGLOGOLD ASHANTI GHANIAN, you can compare the effects of market volatilities on FAN MILK and ANGLOGOLD ASHANTI 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 FAN MILK with a short position of ANGLOGOLD ASHANTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAN MILK and ANGLOGOLD ASHANTI.
Diversification Opportunities for FAN MILK and ANGLOGOLD ASHANTI
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FAN and ANGLOGOLD is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding FAN MILK LTD and ANGLOGOLD ASHANTI GHANIAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLOGOLD ASHANTI GHANIAN and FAN MILK 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 FAN MILK LTD are associated (or correlated) with ANGLOGOLD ASHANTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLOGOLD ASHANTI GHANIAN has no effect on the direction of FAN MILK i.e., FAN MILK and ANGLOGOLD ASHANTI go up and down completely randomly.
Pair Corralation between FAN MILK and ANGLOGOLD ASHANTI
If you would invest 41.00 in ANGLOGOLD ASHANTI GHANIAN on November 29, 2024 and sell it today you would earn a total of 0.00 from holding ANGLOGOLD ASHANTI GHANIAN or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAN MILK LTD vs. ANGLOGOLD ASHANTI GHANIAN
Performance |
| Timeline |
| FAN MILK LTD |
| ANGLOGOLD ASHANTI GHANIAN |
FAN MILK and ANGLOGOLD ASHANTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAN MILK and ANGLOGOLD ASHANTI
The main advantage of trading using opposite FAN MILK and ANGLOGOLD ASHANTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAN MILK position performs unexpectedly, ANGLOGOLD ASHANTI 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 ANGLOGOLD ASHANTI will offset losses from the drop in ANGLOGOLD ASHANTI's long position.| FAN MILK vs. DANNEX AYRTON STARWIN | FAN MILK vs. REPUBLIC BANK LIMITED | FAN MILK vs. ACCESS BANK GHANA | FAN MILK vs. DIGICUT ADVERTISING PRODUCTION |
| ANGLOGOLD ASHANTI vs. DANNEX AYRTON STARWIN | ANGLOGOLD ASHANTI vs. REPUBLIC BANK LIMITED | ANGLOGOLD ASHANTI vs. ACCESS BANK GHANA | ANGLOGOLD ASHANTI vs. DIGICUT ADVERTISING PRODUCTION |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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