Correlation Between Polar Capital and Anglesey Mining
Can any of the company-specific risk be diversified away by investing in both Polar Capital 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 Polar Capital and Anglesey Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Capital Technology and Anglesey Mining, you can compare the effects of market volatilities on Polar Capital 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 Polar Capital with a short position of Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Capital and Anglesey Mining.
Diversification Opportunities for Polar Capital and Anglesey Mining
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Polar and Anglesey is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Polar Capital Technology and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining and Polar Capital 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 Polar Capital Technology 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 Polar Capital i.e., Polar Capital and Anglesey Mining go up and down completely randomly.
Pair Corralation between Polar Capital and Anglesey Mining
Assuming the 90 days trading horizon Polar Capital is expected to generate 8.23 times less return on investment than Anglesey Mining. But when comparing it to its historical volatility, Polar Capital Technology is 2.67 times less risky than Anglesey Mining. It trades about 0.05 of its potential returns per unit of risk. Anglesey Mining is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Anglesey Mining on November 19, 2024 and sell it today you would earn a total of 10.00 from holding Anglesey Mining or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Polar Capital Technology vs. Anglesey Mining
Performance |
| Timeline |
| Polar Capital Technology |
| Anglesey Mining |
Polar Capital and Anglesey Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Capital and Anglesey Mining
The main advantage of trading using opposite Polar Capital and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Capital 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.| Polar Capital vs. Spire Healthcare Group | Polar Capital vs. Premier Foods PLC | Polar Capital vs. Naturhouse Health SA | Polar Capital vs. Tyson Foods Cl |
| Anglesey Mining vs. Grieg Seafood | Anglesey Mining vs. Seche Environnement SA | Anglesey Mining vs. National Beverage Corp | Anglesey Mining vs. JLEN Environmental Assets |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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