Correlation Between GUINNESS GHANA and ANGLOGOLD ASHANTI
Can any of the company-specific risk be diversified away by investing in both GUINNESS GHANA 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 GUINNESS GHANA and ANGLOGOLD ASHANTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GUINNESS GHANA BREWERIES and ANGLOGOLD ASHANTI LIMITED, you can compare the effects of market volatilities on GUINNESS GHANA 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 GUINNESS GHANA with a short position of ANGLOGOLD ASHANTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUINNESS GHANA and ANGLOGOLD ASHANTI.
Diversification Opportunities for GUINNESS GHANA and ANGLOGOLD ASHANTI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUINNESS and ANGLOGOLD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUINNESS GHANA BREWERIES and ANGLOGOLD ASHANTI LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLOGOLD ASHANTI and GUINNESS GHANA 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 GUINNESS GHANA BREWERIES 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 has no effect on the direction of GUINNESS GHANA i.e., GUINNESS GHANA and ANGLOGOLD ASHANTI go up and down completely randomly.
Pair Corralation between GUINNESS GHANA and ANGLOGOLD ASHANTI
If you would invest 3,700 in ANGLOGOLD ASHANTI LIMITED on August 31, 2024 and sell it today you would earn a total of 0.00 from holding ANGLOGOLD ASHANTI LIMITED or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUINNESS GHANA BREWERIES vs. ANGLOGOLD ASHANTI LIMITED
Performance |
| Timeline |
| GUINNESS GHANA BREWERIES |
| ANGLOGOLD ASHANTI |
GUINNESS GHANA and ANGLOGOLD ASHANTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUINNESS GHANA and ANGLOGOLD ASHANTI
The main advantage of trading using opposite GUINNESS GHANA and ANGLOGOLD ASHANTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUINNESS GHANA 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.| GUINNESS GHANA vs. ACCESS BANK GHANA | GUINNESS GHANA vs. SAMBA FOODS LIMITED | GUINNESS GHANA vs. AGRICULTURAL DEVELOPMENT BANK | GUINNESS GHANA vs. SIC INSURANCE ANY |
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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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