Correlation Between Panther Metals and Abingdon Health
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Abingdon Health 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 Abingdon Health 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 Abingdon Health Plc, you can compare the effects of market volatilities on Panther Metals and Abingdon Health 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 Abingdon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Abingdon Health.
Diversification Opportunities for Panther Metals and Abingdon Health
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panther and Abingdon is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Abingdon Health Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abingdon Health Plc 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 Abingdon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abingdon Health Plc has no effect on the direction of Panther Metals i.e., Panther Metals and Abingdon Health go up and down completely randomly.
Pair Corralation between Panther Metals and Abingdon Health
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 15.44 times more return on investment than Abingdon Health. However, Panther Metals is 15.44 times more volatile than Abingdon Health Plc. It trades about 0.07 of its potential returns per unit of risk. Abingdon Health Plc is currently generating about 0.04 per unit of risk. If you would invest 11,625 in Panther Metals PLC on September 3, 2024 and sell it today you would lose (125.00) from holding Panther Metals PLC or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Panther Metals PLC vs. Abingdon Health Plc
Performance |
| Timeline |
| Panther Metals PLC |
| Abingdon Health Plc |
Panther Metals and Abingdon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Abingdon Health
The main advantage of trading using opposite Panther Metals and Abingdon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Abingdon Health 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 Abingdon Health will offset losses from the drop in Abingdon Health's long position.| Panther Metals vs. Greenroc Mining PLC | Panther Metals vs. Playtech Plc | Panther Metals vs. Telecom Italia SpA | Panther Metals vs. Wheaton Precious Metals |
| Abingdon Health vs. CleanTech Lithium plc | Abingdon Health vs. GoldMining | Abingdon Health vs. Panther Metals PLC | Abingdon Health vs. GreenX Metals |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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