Correlation Between Global Battery and Anson Resources
Can any of the company-specific risk be diversified away by investing in both Global Battery and Anson Resources 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 Global Battery and Anson Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Battery Metals and Anson Resources Limited, you can compare the effects of market volatilities on Global Battery and Anson Resources 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 Global Battery with a short position of Anson Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Battery and Anson Resources.
Diversification Opportunities for Global Battery and Anson Resources
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Anson is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Global Battery Metals and Anson Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anson Resources and Global Battery 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 Global Battery Metals are associated (or correlated) with Anson Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anson Resources has no effect on the direction of Global Battery i.e., Global Battery and Anson Resources go up and down completely randomly.
Pair Corralation between Global Battery and Anson Resources
Assuming the 90 days horizon Global Battery Metals is expected to under-perform the Anson Resources. In addition to that, Global Battery is 1.29 times more volatile than Anson Resources Limited. It trades about -0.04 of its total potential returns per unit of risk. Anson Resources Limited is currently generating about 0.22 per unit of volatility. If you would invest 4.18 in Anson Resources Limited on October 13, 2024 and sell it today you would earn a total of 2.21 from holding Anson Resources Limited or generate 52.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Global Battery Metals vs. Anson Resources Limited
Performance |
| Timeline |
| Global Battery Metals |
| Anson Resources |
Global Battery and Anson Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Battery and Anson Resources
The main advantage of trading using opposite Global Battery and Anson Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Battery position performs unexpectedly, Anson Resources 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 Anson Resources will offset losses from the drop in Anson Resources' long position.| Global Battery vs. Altair International Corp | Global Battery vs. Lake Resources NL | Global Battery vs. Jourdan Resources | Global Battery vs. Lomiko Metals |
| Anson Resources vs. Edison Cobalt Corp | Anson Resources vs. Champion Bear Resources | Anson Resources vs. Avarone Metals | Anson Resources vs. Adriatic Metals PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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