Correlation Between Solar Alliance and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Solar Alliance and Angkor 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 Solar Alliance and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solar Alliance Energy and Angkor Resources Corp, you can compare the effects of market volatilities on Solar Alliance and Angkor 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 Solar Alliance with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solar Alliance and Angkor Resources.
Diversification Opportunities for Solar Alliance and Angkor Resources
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Solar and Angkor is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Solar Alliance Energy and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp and Solar Alliance 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 Solar Alliance Energy are associated (or correlated) with Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Solar Alliance i.e., Solar Alliance and Angkor Resources go up and down completely randomly.
Pair Corralation between Solar Alliance and Angkor Resources
Assuming the 90 days trading horizon Solar Alliance Energy is expected to under-perform the Angkor Resources. In addition to that, Solar Alliance is 1.68 times more volatile than Angkor Resources Corp. It trades about -0.04 of its total potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.07 per unit of volatility. If you would invest 9.00 in Angkor Resources Corp on August 31, 2024 and sell it today you would earn a total of 0.50 from holding Angkor Resources Corp or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solar Alliance Energy vs. Angkor Resources Corp
Performance |
| Timeline |
| Solar Alliance Energy |
| Angkor Resources Corp |
Solar Alliance and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solar Alliance and Angkor Resources
The main advantage of trading using opposite Solar Alliance and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solar Alliance position performs unexpectedly, Angkor 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Solar Alliance vs. Mene Inc | Solar Alliance vs. Africa Oil Corp | Solar Alliance vs. Financial 15 Split | Solar Alliance vs. Rubicon Organics |
| Angkor Resources vs. Solar Alliance Energy | Angkor Resources vs. Global X Active | Angkor Resources vs. Financial 15 Split | Angkor Resources vs. Rubicon Organics |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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