Correlation Between Puma Exploration and Amani Gold
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Amani Gold 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 Puma Exploration and Amani Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Amani Gold Limited, you can compare the effects of market volatilities on Puma Exploration and Amani Gold 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 Puma Exploration with a short position of Amani Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Amani Gold.
Diversification Opportunities for Puma Exploration and Amani Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Puma and Amani is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Amani Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amani Gold Limited and Puma Exploration 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 Puma Exploration are associated (or correlated) with Amani Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amani Gold Limited has no effect on the direction of Puma Exploration i.e., Puma Exploration and Amani Gold go up and down completely randomly.
Pair Corralation between Puma Exploration and Amani Gold
If you would invest 5.55 in Puma Exploration on November 5, 2024 and sell it today you would earn a total of 0.45 from holding Puma Exploration or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Puma Exploration vs. Amani Gold Limited
Performance |
| Timeline |
| Puma Exploration |
| Amani Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Puma Exploration and Amani Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Amani Gold
The main advantage of trading using opposite Puma Exploration and Amani Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Amani Gold 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 Amani Gold will offset losses from the drop in Amani Gold's long position.| Puma Exploration vs. Newcore Gold | Puma Exploration vs. Cerrado Gold | Puma Exploration vs. Palamina Corp | Puma Exploration vs. Gold Springs Resource |
| Amani Gold vs. Antioquia Gold | Amani Gold vs. Asante Gold | Amani Gold vs. Bluestone Resources | Amani Gold vs. Big Ridge Gold |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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