Correlation Between Guaranty Trust and Asiamet Resources
Can any of the company-specific risk be diversified away by investing in both Guaranty Trust and Asiamet 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 Guaranty Trust and Asiamet Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guaranty Trust Holding and Asiamet Resources Limited, you can compare the effects of market volatilities on Guaranty Trust and Asiamet 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 Guaranty Trust with a short position of Asiamet Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guaranty Trust and Asiamet Resources.
Diversification Opportunities for Guaranty Trust and Asiamet Resources
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guaranty and Asiamet is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guaranty Trust Holding and Asiamet Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiamet Resources and Guaranty Trust 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 Guaranty Trust Holding are associated (or correlated) with Asiamet Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiamet Resources has no effect on the direction of Guaranty Trust i.e., Guaranty Trust and Asiamet Resources go up and down completely randomly.
Pair Corralation between Guaranty Trust and Asiamet Resources
Assuming the 90 days trading horizon Guaranty Trust Holding is expected to generate 0.53 times more return on investment than Asiamet Resources. However, Guaranty Trust Holding is 1.89 times less risky than Asiamet Resources. It trades about 0.06 of its potential returns per unit of risk. Asiamet Resources Limited is currently generating about -0.38 per unit of risk. If you would invest 182.00 in Guaranty Trust Holding on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Guaranty Trust Holding or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guaranty Trust Holding vs. Asiamet Resources Limited
Performance |
| Timeline |
| Guaranty Trust Holding |
| Asiamet Resources |
Guaranty Trust and Asiamet Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guaranty Trust and Asiamet Resources
The main advantage of trading using opposite Guaranty Trust and Asiamet Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guaranty Trust position performs unexpectedly, Asiamet 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 Asiamet Resources will offset losses from the drop in Asiamet Resources' long position.| Guaranty Trust vs. Lendinvest PLC | Guaranty Trust vs. Bank of Ireland | Guaranty Trust vs. Greenroc Mining PLC | Guaranty Trust vs. Lundin Mining Corp |
| Asiamet Resources vs. Erste Group Bank | Asiamet Resources vs. Hollywood Bowl Group | Asiamet Resources vs. Atresmedia | Asiamet Resources vs. Bank of Ireland |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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