Correlation Between Group Eleven and United States
Can any of the company-specific risk be diversified away by investing in both Group Eleven and United States 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 Group Eleven and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group Eleven Resources and United States Antimony, you can compare the effects of market volatilities on Group Eleven and United States 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 Group Eleven with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group Eleven and United States.
Diversification Opportunities for Group Eleven and United States
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Group and United is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Group Eleven Resources and United States Antimony in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Antimony and Group Eleven 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 Group Eleven Resources are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Antimony has no effect on the direction of Group Eleven i.e., Group Eleven and United States go up and down completely randomly.
Pair Corralation between Group Eleven and United States
Assuming the 90 days horizon Group Eleven is expected to generate 3.14 times less return on investment than United States. In addition to that, Group Eleven is 1.05 times more volatile than United States Antimony. It trades about 0.04 of its total potential returns per unit of risk. United States Antimony is currently generating about 0.13 per unit of volatility. If you would invest 34.00 in United States Antimony on September 1, 2024 and sell it today you would earn a total of 42.00 from holding United States Antimony or generate 123.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Group Eleven Resources vs. United States Antimony
Performance |
| Timeline |
| Group Eleven Resources |
| United States Antimony |
Group Eleven and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group Eleven and United States
The main advantage of trading using opposite Group Eleven and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group Eleven position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Group Eleven vs. Tinka Resources Limited | Group Eleven vs. Neo Battery Materials | Group Eleven vs. United States Antimony | Group Eleven vs. NioCorp Developments Ltd |
| United States vs. Syrah Resources Limited | United States vs. Nouveau Monde Graphite | United States vs. Trilogy Metals | United States vs. Global Atomic 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |