Correlation Between TRUST BANK and ANGLOGOLD ASHANTI
Can any of the company-specific risk be diversified away by investing in both TRUST BANK and ANGLOGOLD ASHANTI 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 TRUST BANK and ANGLOGOLD ASHANTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRUST BANK LIMITED and ANGLOGOLD ASHANTI LIMITED, you can compare the effects of market volatilities on TRUST BANK and ANGLOGOLD ASHANTI 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 TRUST BANK with a short position of ANGLOGOLD ASHANTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRUST BANK and ANGLOGOLD ASHANTI.
Diversification Opportunities for TRUST BANK and ANGLOGOLD ASHANTI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TRUST and ANGLOGOLD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TRUST BANK LIMITED and ANGLOGOLD ASHANTI LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLOGOLD ASHANTI and TRUST BANK 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 TRUST BANK LIMITED are associated (or correlated) with ANGLOGOLD ASHANTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLOGOLD ASHANTI has no effect on the direction of TRUST BANK i.e., TRUST BANK and ANGLOGOLD ASHANTI go up and down completely randomly.
Pair Corralation between TRUST BANK and ANGLOGOLD ASHANTI
If you would invest 82.00 in TRUST BANK LIMITED on September 2, 2024 and sell it today you would earn a total of 1.00 from holding TRUST BANK LIMITED or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRUST BANK LIMITED vs. ANGLOGOLD ASHANTI LIMITED
Performance |
| Timeline |
| TRUST BANK LIMITED |
| ANGLOGOLD ASHANTI |
TRUST BANK and ANGLOGOLD ASHANTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRUST BANK and ANGLOGOLD ASHANTI
The main advantage of trading using opposite TRUST BANK and ANGLOGOLD ASHANTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRUST BANK position performs unexpectedly, ANGLOGOLD ASHANTI 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 ANGLOGOLD ASHANTI will offset losses from the drop in ANGLOGOLD ASHANTI's long position.The idea behind TRUST BANK LIMITED and ANGLOGOLD ASHANTI LIMITED pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ANGLOGOLD ASHANTI vs. SIC INSURANCE ANY | ANGLOGOLD ASHANTI vs. AGRICULTURAL DEVELOPMENT BANK | ANGLOGOLD ASHANTI vs. TRUST BANK LIMITED | ANGLOGOLD ASHANTI vs. ECOBANK GHANA LIMITED |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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