Correlation Between JNC Resources and Amani Gold
Can any of the company-specific risk be diversified away by investing in both JNC Resources and Amani Gold 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 JNC Resources and Amani Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JNC Resources and Amani Gold Limited, you can compare the effects of market volatilities on JNC Resources and Amani Gold 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 JNC Resources with a short position of Amani Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNC Resources and Amani Gold.
Diversification Opportunities for JNC Resources and Amani Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JNC and Amani is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JNC Resources and Amani Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amani Gold Limited and JNC Resources 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 JNC Resources are associated (or correlated) with Amani Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amani Gold Limited has no effect on the direction of JNC Resources i.e., JNC Resources and Amani Gold go up and down completely randomly.
Pair Corralation between JNC Resources and Amani Gold
Assuming the 90 days horizon JNC Resources is expected to generate 2.35 times more return on investment than Amani Gold. However, JNC Resources is 2.35 times more volatile than Amani Gold Limited. It trades about 0.1 of its potential returns per unit of risk. Amani Gold Limited is currently generating about 0.05 per unit of risk. If you would invest 3.00 in JNC Resources on October 25, 2024 and sell it today you would lose (1.20) from holding JNC Resources or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 80.16% |
| Values | Daily Returns |
JNC Resources vs. Amani Gold Limited
Performance |
| Timeline |
| JNC Resources |
| Amani Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JNC Resources and Amani Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JNC Resources and Amani Gold
The main advantage of trading using opposite JNC Resources and Amani Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNC Resources position performs unexpectedly, Amani Gold 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 Amani Gold will offset losses from the drop in Amani Gold's long position.| JNC Resources vs. Argo Gold | JNC Resources vs. Advance Gold Corp | JNC Resources vs. Blue Star Gold | JNC Resources vs. Minnova Corp |
| Amani Gold vs. Antioquia Gold | Amani Gold vs. Asante Gold | Amani Gold vs. Bluestone Resources | Amani Gold vs. Big Ridge Gold |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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