Correlation Between Global Atomic and Anfield Resources
Can any of the company-specific risk be diversified away by investing in both Global Atomic and Anfield Resources 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 Global Atomic and Anfield Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Atomic Corp and Anfield Resources, you can compare the effects of market volatilities on Global Atomic and Anfield Resources 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 Global Atomic with a short position of Anfield Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Atomic and Anfield Resources.
Diversification Opportunities for Global Atomic and Anfield Resources
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Anfield is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Global Atomic Corp and Anfield Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Resources and Global Atomic 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 Global Atomic Corp are associated (or correlated) with Anfield Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Resources has no effect on the direction of Global Atomic i.e., Global Atomic and Anfield Resources go up and down completely randomly.
Pair Corralation between Global Atomic and Anfield Resources
Assuming the 90 days trading horizon Global Atomic Corp is expected to under-perform the Anfield Resources. But the stock apears to be less risky and, when comparing its historical volatility, Global Atomic Corp is 2.94 times less risky than Anfield Resources. The stock trades about -0.03 of its potential returns per unit of risk. The Anfield Resources is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3.87 in Anfield Resources on September 5, 2024 and sell it today you would earn a total of 3.18 from holding Anfield Resources or generate 82.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.21% |
| Values | Daily Returns |
Global Atomic Corp vs. Anfield Resources
Performance |
| Timeline |
| Global Atomic Corp |
| Anfield Resources |
Global Atomic and Anfield Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Atomic and Anfield Resources
The main advantage of trading using opposite Global Atomic and Anfield Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Atomic position performs unexpectedly, Anfield Resources 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 Anfield Resources will offset losses from the drop in Anfield Resources' long position.| Global Atomic vs. First Majestic Silver | Global Atomic vs. Ivanhoe Energy | Global Atomic vs. Orezone Gold Corp | Global Atomic vs. Faraday Copper Corp |
| Anfield Resources vs. JSC National Atomic | Anfield Resources vs. Global Atomic Corp | Anfield Resources vs. Sprott Physical Uranium | Anfield Resources vs. Superior Plus Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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