Correlation Between Ironbark Capital and Anax Metals
Can any of the company-specific risk be diversified away by investing in both Ironbark Capital and Anax Metals 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 Ironbark Capital and Anax Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ironbark Capital and Anax Metals, you can compare the effects of market volatilities on Ironbark Capital and Anax Metals 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 Ironbark Capital with a short position of Anax Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ironbark Capital and Anax Metals.
Diversification Opportunities for Ironbark Capital and Anax Metals
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ironbark and Anax is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ironbark Capital and Anax Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anax Metals and Ironbark Capital 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 Ironbark Capital are associated (or correlated) with Anax Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anax Metals has no effect on the direction of Ironbark Capital i.e., Ironbark Capital and Anax Metals go up and down completely randomly.
Pair Corralation between Ironbark Capital and Anax Metals
Assuming the 90 days trading horizon Ironbark Capital is expected to generate 0.2 times more return on investment than Anax Metals. However, Ironbark Capital is 5.12 times less risky than Anax Metals. It trades about 0.0 of its potential returns per unit of risk. Anax Metals is currently generating about -0.07 per unit of risk. If you would invest 46.00 in Ironbark Capital on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Ironbark Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ironbark Capital vs. Anax Metals
Performance |
| Timeline |
| Ironbark Capital |
| Anax Metals |
Ironbark Capital and Anax Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ironbark Capital and Anax Metals
The main advantage of trading using opposite Ironbark Capital and Anax Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ironbark Capital position performs unexpectedly, Anax Metals 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 Anax Metals will offset losses from the drop in Anax Metals' long position.| Ironbark Capital vs. GQG Partners DRC | Ironbark Capital vs. Metrics Master Income | Ironbark Capital vs. L1 Long Short | Ironbark Capital vs. Wam Leaders |
| Anax Metals vs. Ironbark Capital | Anax Metals vs. G8 Education | Anax Metals vs. Red Hill Iron | Anax Metals vs. Aussie Broadband |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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