Correlation Between Herald Investment and Antofagasta PLC
Can any of the company-specific risk be diversified away by investing in both Herald Investment and Antofagasta PLC 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 Herald Investment and Antofagasta PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Herald Investment Trust and Antofagasta PLC, you can compare the effects of market volatilities on Herald Investment and Antofagasta PLC 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 Herald Investment with a short position of Antofagasta PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herald Investment and Antofagasta PLC.
Diversification Opportunities for Herald Investment and Antofagasta PLC
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Herald and Antofagasta is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Herald Investment Trust and Antofagasta PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antofagasta PLC and Herald Investment 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 Herald Investment Trust are associated (or correlated) with Antofagasta PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antofagasta PLC has no effect on the direction of Herald Investment i.e., Herald Investment and Antofagasta PLC go up and down completely randomly.
Pair Corralation between Herald Investment and Antofagasta PLC
Assuming the 90 days trading horizon Herald Investment Trust is expected to under-perform the Antofagasta PLC. But the stock apears to be less risky and, when comparing its historical volatility, Herald Investment Trust is 1.33 times less risky than Antofagasta PLC. The stock trades about -0.14 of its potential returns per unit of risk. The Antofagasta PLC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 161,400 in Antofagasta PLC on November 3, 2024 and sell it today you would earn a total of 11,100 from holding Antofagasta PLC or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Herald Investment Trust vs. Antofagasta PLC
Performance |
| Timeline |
| Herald Investment Trust |
| Antofagasta PLC |
Herald Investment and Antofagasta PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Herald Investment and Antofagasta PLC
The main advantage of trading using opposite Herald Investment and Antofagasta PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herald Investment position performs unexpectedly, Antofagasta PLC 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 Antofagasta PLC will offset losses from the drop in Antofagasta PLC's long position.| Herald Investment vs. Quadrise Plc | Herald Investment vs. ImmuPharma PLC | Herald Investment vs. Intuitive Investments Group | Herald Investment vs. European Metals Holdings |
| Antofagasta PLC vs. Pan American Silver | Antofagasta PLC vs. Gamma Communications PLC | Antofagasta PLC vs. First Majestic Silver | Antofagasta PLC vs. Fortuna Silver Mines |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |