Correlation Between Gold Fields and ATN International
Can any of the company-specific risk be diversified away by investing in both Gold Fields and ATN International 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 Gold Fields and ATN International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and ATN International, you can compare the effects of market volatilities on Gold Fields and ATN International 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 Gold Fields with a short position of ATN International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and ATN International.
Diversification Opportunities for Gold Fields and ATN International
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gold and ATN is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International and Gold Fields 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 Gold Fields Ltd are associated (or correlated) with ATN International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATN International has no effect on the direction of Gold Fields i.e., Gold Fields and ATN International go up and down completely randomly.
Pair Corralation between Gold Fields and ATN International
Considering the 90-day investment horizon Gold Fields Ltd is expected to generate 0.68 times more return on investment than ATN International. However, Gold Fields Ltd is 1.48 times less risky than ATN International. It trades about 0.02 of its potential returns per unit of risk. ATN International is currently generating about -0.01 per unit of risk. If you would invest 1,472 in Gold Fields Ltd on August 24, 2024 and sell it today you would earn a total of 54.00 from holding Gold Fields Ltd or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Fields Ltd vs. ATN International
Performance |
| Timeline |
| Gold Fields |
| ATN International |
Gold Fields and ATN International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Fields and ATN International
The main advantage of trading using opposite Gold Fields and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields position performs unexpectedly, ATN International 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 ATN International will offset losses from the drop in ATN International's long position.| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
| ATN International vs. Eshallgo Class A | ATN International vs. Amtech Systems | ATN International vs. Gold Fields Ltd | ATN International vs. Aegean Airlines SA |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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