Correlation Between OtelloASA and Anglo American
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By analyzing existing cross correlation between Otello ASA and Anglo American plc, you can compare the effects of market volatilities on OtelloASA and Anglo American 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 OtelloASA with a short position of Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of OtelloASA and Anglo American.
Diversification Opportunities for OtelloASA and Anglo American
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OtelloASA and Anglo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Otello ASA and Anglo American plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American plc and OtelloASA 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 Otello ASA are associated (or correlated) with Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American plc has no effect on the direction of OtelloASA i.e., OtelloASA and Anglo American go up and down completely randomly.
Pair Corralation between OtelloASA and Anglo American
Assuming the 90 days horizon Otello ASA is expected to generate 0.9 times more return on investment than Anglo American. However, Otello ASA is 1.11 times less risky than Anglo American. It trades about 0.0 of its potential returns per unit of risk. Anglo American plc is currently generating about -0.01 per unit of risk. If you would invest 74.00 in Otello ASA on August 28, 2024 and sell it today you would lose (6.00) from holding Otello ASA or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Otello ASA vs. Anglo American plc
Performance |
| Timeline |
| Otello ASA |
| Anglo American plc |
OtelloASA and Anglo American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OtelloASA and Anglo American
The main advantage of trading using opposite OtelloASA and Anglo American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OtelloASA position performs unexpectedly, Anglo American 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 Anglo American will offset losses from the drop in Anglo American's long position.| OtelloASA vs. Superior Plus Corp | OtelloASA vs. NMI Holdings | OtelloASA vs. Origin Agritech | OtelloASA vs. SIVERS SEMICONDUCTORS AB |
| Anglo American vs. Superior Plus Corp | Anglo American vs. NMI Holdings | Anglo American vs. Origin Agritech | Anglo American vs. SIVERS SEMICONDUCTORS AB |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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