Correlation Between New Destiny and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both New Destiny 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 New Destiny and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Destiny Mining and Angkor Resources Corp, you can compare the effects of market volatilities on New Destiny 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 New Destiny with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Destiny and Angkor Resources.
Diversification Opportunities for New Destiny and Angkor Resources
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Angkor is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding New Destiny Mining 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 New Destiny 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 New Destiny Mining 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 New Destiny i.e., New Destiny and Angkor Resources go up and down completely randomly.
Pair Corralation between New Destiny and Angkor Resources
Assuming the 90 days horizon New Destiny Mining is expected to under-perform the Angkor Resources. But the stock apears to be less risky and, when comparing its historical volatility, New Destiny Mining is 1.01 times less risky than Angkor Resources. The stock trades about -0.31 of its potential returns per unit of risk. The Angkor Resources Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Angkor Resources Corp on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Angkor Resources Corp or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
New Destiny Mining vs. Angkor Resources Corp
Performance |
| Timeline |
| New Destiny Mining |
| Angkor Resources Corp |
New Destiny and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Destiny and Angkor Resources
The main advantage of trading using opposite New Destiny and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Destiny 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.| New Destiny vs. First Majestic Silver | New Destiny vs. Ivanhoe Energy | New Destiny vs. Orezone Gold Corp | New Destiny vs. Faraday Copper Corp |
| Angkor Resources vs. Lupaka Gold Corp | Angkor Resources vs. Avrupa Minerals | Angkor Resources vs. Asiabasemetals |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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