Correlation Between Minerva SA and Golden Agri
Can any of the company-specific risk be diversified away by investing in both Minerva SA and Golden Agri 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 Minerva SA and Golden Agri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minerva SA and Golden Agri Resources, you can compare the effects of market volatilities on Minerva SA and Golden Agri 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 Minerva SA with a short position of Golden Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minerva SA and Golden Agri.
Diversification Opportunities for Minerva SA and Golden Agri
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Minerva and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Minerva SA and Golden Agri Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Agri Resources and Minerva SA 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 Minerva SA are associated (or correlated) with Golden Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Agri Resources has no effect on the direction of Minerva SA i.e., Minerva SA and Golden Agri go up and down completely randomly.
Pair Corralation between Minerva SA and Golden Agri
Assuming the 90 days horizon Minerva SA is expected to generate 1.35 times more return on investment than Golden Agri. However, Minerva SA is 1.35 times more volatile than Golden Agri Resources. It trades about 0.06 of its potential returns per unit of risk. Golden Agri Resources is currently generating about -0.06 per unit of risk. If you would invest 380.00 in Minerva SA on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Minerva SA or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minerva SA vs. Golden Agri Resources
Performance |
| Timeline |
| Minerva SA |
| Golden Agri Resources |
Minerva SA and Golden Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minerva SA and Golden Agri
The main advantage of trading using opposite Minerva SA and Golden Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minerva SA position performs unexpectedly, Golden Agri 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 Golden Agri will offset losses from the drop in Golden Agri's long position.| Minerva SA vs. Golden Agri Resources | Minerva SA vs. SalMar ASA | Minerva SA vs. Wilmar International | Minerva SA vs. Brasilagro Adr |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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