Correlation Between Panther Metals and AMG Advanced
Can any of the company-specific risk be diversified away by investing in both Panther Metals and AMG Advanced 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 Panther Metals and AMG Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and AMG Advanced Metallurgical, you can compare the effects of market volatilities on Panther Metals and AMG Advanced 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 Panther Metals with a short position of AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and AMG Advanced.
Diversification Opportunities for Panther Metals and AMG Advanced
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panther and AMG is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu and Panther Metals 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 Panther Metals PLC are associated (or correlated) with AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of Panther Metals i.e., Panther Metals and AMG Advanced go up and down completely randomly.
Pair Corralation between Panther Metals and AMG Advanced
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 2.57 times more return on investment than AMG Advanced. However, Panther Metals is 2.57 times more volatile than AMG Advanced Metallurgical. It trades about 0.14 of its potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about -0.23 per unit of risk. If you would invest 10,000 in Panther Metals PLC on August 30, 2024 and sell it today you would earn a total of 1,500 from holding Panther Metals PLC or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panther Metals PLC vs. AMG Advanced Metallurgical
Performance |
| Timeline |
| Panther Metals PLC |
| AMG Advanced Metallu |
Panther Metals and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and AMG Advanced
The main advantage of trading using opposite Panther Metals and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Centamin PLC | Panther Metals vs. Atalaya Mining |
| AMG Advanced vs. Griffin Mining | AMG Advanced vs. Greenroc Mining PLC | AMG Advanced vs. International Biotechnology Trust | AMG Advanced vs. AfriTin 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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