Correlation Between NYSE Composite and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Angkor Resources Corp, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Angkor Resources.
Diversification Opportunities for NYSE Composite and Angkor Resources
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Angkor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Angkor Resources go up and down completely randomly.
Pair Corralation between NYSE Composite and Angkor Resources
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.5 times less return on investment than Angkor Resources. But when comparing it to its historical volatility, NYSE Composite is 10.23 times less risky than Angkor Resources. It trades about 0.11 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Angkor Resources Corp on September 1, 2024 and sell it today you would lose (0.45) from holding Angkor Resources Corp or give up 6.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
NYSE Composite vs. Angkor Resources Corp
Performance |
| Timeline |
NYSE Composite and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Angkor Resources Corp
Pair trading matchups for Angkor Resources
Pair Trading with NYSE Composite and Angkor Resources
The main advantage of trading using opposite NYSE Composite and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Angkor Resources vs. South32 Limited | Angkor Resources vs. NioCorp Developments Ltd | Angkor Resources vs. HUMANA INC | Angkor Resources vs. SCOR PK |
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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