Correlation Between Impax Asset and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Impax Asset and Anglo Asian 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 Impax Asset and Anglo Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impax Asset Management and Anglo Asian Mining, you can compare the effects of market volatilities on Impax Asset and Anglo Asian 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 Impax Asset with a short position of Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Asset and Anglo Asian.
Diversification Opportunities for Impax Asset and Anglo Asian
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Impax and Anglo is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Impax Asset Management and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining and Impax Asset 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 Impax Asset Management are associated (or correlated) with Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Impax Asset i.e., Impax Asset and Anglo Asian go up and down completely randomly.
Pair Corralation between Impax Asset and Anglo Asian
Assuming the 90 days trading horizon Impax Asset Management is expected to under-perform the Anglo Asian. In addition to that, Impax Asset is 1.01 times more volatile than Anglo Asian Mining. It trades about -0.37 of its total potential returns per unit of risk. Anglo Asian Mining is currently generating about 0.01 per unit of volatility. If you would invest 10,500 in Anglo Asian Mining on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Anglo Asian Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impax Asset Management vs. Anglo Asian Mining
Performance |
| Timeline |
| Impax Asset Management |
| Anglo Asian Mining |
Impax Asset and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impax Asset and Anglo Asian
The main advantage of trading using opposite Impax Asset and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Asset position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Impax Asset vs. Games Workshop Group | Impax Asset vs. Auto Trader Group | Impax Asset vs. Coor Service Management | Impax Asset vs. iShares Dow Jones |
| Anglo Asian vs. Xeros Technology Group | Anglo Asian vs. Broadridge Financial Solutions | Anglo Asian vs. Pressure Technologies Plc | Anglo Asian vs. Gaztransport et Technigaz |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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