Correlation Between Oxford Metrics and Anglesey Mining
Can any of the company-specific risk be diversified away by investing in both Oxford Metrics and Anglesey Mining 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 Oxford Metrics and Anglesey Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Metrics plc and Anglesey Mining, you can compare the effects of market volatilities on Oxford Metrics and Anglesey 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 Oxford Metrics with a short position of Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Metrics and Anglesey Mining.
Diversification Opportunities for Oxford Metrics and Anglesey Mining
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oxford and Anglesey is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Metrics plc and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining and Oxford Metrics 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 Oxford Metrics plc are associated (or correlated) with Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of Oxford Metrics i.e., Oxford Metrics and Anglesey Mining go up and down completely randomly.
Pair Corralation between Oxford Metrics and Anglesey Mining
Assuming the 90 days trading horizon Oxford Metrics plc is expected to under-perform the Anglesey Mining. But the stock apears to be less risky and, when comparing its historical volatility, Oxford Metrics plc is 1.82 times less risky than Anglesey Mining. The stock trades about -0.07 of its potential returns per unit of risk. The Anglesey Mining is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 155.00 in Anglesey Mining on September 12, 2024 and sell it today you would lose (62.00) from holding Anglesey Mining or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Oxford Metrics plc vs. Anglesey Mining
Performance |
| Timeline |
| Oxford Metrics plc |
| Anglesey Mining |
Oxford Metrics and Anglesey Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Metrics and Anglesey Mining
The main advantage of trading using opposite Oxford Metrics and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Metrics position performs unexpectedly, Anglesey 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 Anglesey Mining will offset losses from the drop in Anglesey Mining's long position.| Oxford Metrics vs. Air Products Chemicals | Oxford Metrics vs. Young Cos Brewery | Oxford Metrics vs. Celebrus Technologies plc | Oxford Metrics vs. Martin Marietta Materials |
| Anglesey Mining vs. Givaudan SA | Anglesey Mining vs. Antofagasta PLC | Anglesey Mining vs. Ferrexpo PLC | Anglesey Mining vs. Atalaya Mining |
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 Stocks Directory module to find actively traded stocks across global markets.
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