Correlation Between Sandfire Resources and Anson Resources
Can any of the company-specific risk be diversified away by investing in both Sandfire Resources 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 Sandfire Resources and Anson Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandfire Resources NL and Anson Resources, you can compare the effects of market volatilities on Sandfire Resources 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 Sandfire Resources with a short position of Anson Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandfire Resources and Anson Resources.
Diversification Opportunities for Sandfire Resources and Anson Resources
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sandfire and Anson is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sandfire Resources NL and Anson Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anson Resources and Sandfire Resources 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 Sandfire Resources NL 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 Sandfire Resources i.e., Sandfire Resources and Anson Resources go up and down completely randomly.
Pair Corralation between Sandfire Resources and Anson Resources
Assuming the 90 days trading horizon Sandfire Resources NL is expected to generate 0.4 times more return on investment than Anson Resources. However, Sandfire Resources NL is 2.51 times less risky than Anson Resources. It trades about 0.07 of its potential returns per unit of risk. Anson Resources is currently generating about -0.02 per unit of risk. If you would invest 541.00 in Sandfire Resources NL on August 29, 2024 and sell it today you would earn a total of 488.00 from holding Sandfire Resources NL or generate 90.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandfire Resources NL vs. Anson Resources
Performance |
| Timeline |
| Sandfire Resources |
| Anson Resources |
Sandfire Resources and Anson Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandfire Resources and Anson Resources
The main advantage of trading using opposite Sandfire Resources and Anson Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandfire Resources 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.| Sandfire Resources vs. Pinnacle Investment Management | Sandfire Resources vs. Bio Gene Technology | Sandfire Resources vs. Macquarie Technology Group | Sandfire Resources vs. Computershare |
| Anson Resources vs. Northern Star Resources | Anson Resources vs. Evolution Mining | Anson Resources vs. Bluescope Steel | Anson Resources vs. Sandfire Resources NL |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |