Correlation Between Minco Capital and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Minco Capital and Angkor 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 Minco Capital and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minco Capital Corp and Angkor Resources Corp, you can compare the effects of market volatilities on Minco Capital and Angkor 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 Minco Capital with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minco Capital and Angkor Resources.
Diversification Opportunities for Minco Capital and Angkor Resources
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Minco and Angkor is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Minco Capital Corp and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp and Minco 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 Minco Capital Corp are associated (or correlated) with Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Minco Capital i.e., Minco Capital and Angkor Resources go up and down completely randomly.
Pair Corralation between Minco Capital and Angkor Resources
Assuming the 90 days horizon Minco Capital Corp is not expected to generate positive returns. However, Minco Capital Corp is 1.22 times less risky than Angkor Resources. It waists most of its returns potential to compensate for thr risk taken. Angkor Resources is generating about 0.0 per unit of risk. If you would invest 12.00 in Angkor Resources Corp on August 29, 2024 and sell it today you would lose (2.50) from holding Angkor Resources Corp or give up 20.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minco Capital Corp vs. Angkor Resources Corp
Performance |
| Timeline |
| Minco Capital Corp |
| Angkor Resources Corp |
Minco Capital and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minco Capital and Angkor Resources
The main advantage of trading using opposite Minco Capital and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minco Capital position performs unexpectedly, Angkor 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Minco Capital vs. Cogeco Communications | Minco Capital vs. Enerev5 Metals | Minco Capital vs. Computer Modelling Group | Minco Capital vs. T2 Metals Corp |
| Angkor Resources vs. First Majestic Silver | Angkor Resources vs. Ivanhoe Energy | Angkor Resources vs. Orezone Gold Corp | Angkor Resources vs. Faraday Copper Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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