Correlation Between Anglo American and Peel Mining
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By analyzing existing cross correlation between Anglo American plc and Peel Mining Limited, you can compare the effects of market volatilities on Anglo American and Peel Mining 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 Anglo American with a short position of Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and Peel Mining.
Diversification Opportunities for Anglo American and Peel Mining
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anglo and Peel is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American plc and Peel Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining Limited and Anglo American 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 Anglo American plc are associated (or correlated) with Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining Limited has no effect on the direction of Anglo American i.e., Anglo American and Peel Mining go up and down completely randomly.
Pair Corralation between Anglo American and Peel Mining
Assuming the 90 days trading horizon Anglo American plc is expected to under-perform the Peel Mining. But the stock apears to be less risky and, when comparing its historical volatility, Anglo American plc is 2.8 times less risky than Peel Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Peel Mining Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9.15 in Peel Mining Limited on September 27, 2024 and sell it today you would lose (2.20) from holding Peel Mining Limited or give up 24.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo American plc vs. Peel Mining Limited
Performance |
| Timeline |
| Anglo American plc |
| Peel Mining Limited |
Anglo American and Peel Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo American and Peel Mining
The main advantage of trading using opposite Anglo American and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo American position performs unexpectedly, Peel Mining 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 Peel Mining will offset losses from the drop in Peel Mining's long position.| Anglo American vs. Rio Tinto Group | Anglo American vs. Liontown Resources Limited | Anglo American vs. NEXA RESOURCES SA | Anglo American vs. STRAITS TRADG SD |
| Peel Mining vs. Rio Tinto Group | Peel Mining vs. Anglo American plc | Peel Mining vs. Liontown Resources Limited | Peel Mining vs. NEXA RESOURCES SA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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