Correlation Between United States and Group Eleven
Can any of the company-specific risk be diversified away by investing in both United States and Group Eleven 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 United States and Group Eleven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Antimony and Group Eleven Resources, you can compare the effects of market volatilities on United States and Group Eleven 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 United States with a short position of Group Eleven. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Group Eleven.
Diversification Opportunities for United States and Group Eleven
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between United and Group is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding United States Antimony and Group Eleven Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Eleven Resources and United States 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 United States Antimony are associated (or correlated) with Group Eleven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Eleven Resources has no effect on the direction of United States i.e., United States and Group Eleven go up and down completely randomly.
Pair Corralation between United States and Group Eleven
Given the investment horizon of 90 days United States Antimony is expected to generate 0.95 times more return on investment than Group Eleven. However, United States Antimony is 1.05 times less risky than Group Eleven. It trades about 0.13 of its potential returns per unit of risk. Group Eleven Resources is currently generating about 0.04 per unit of risk. If you would invest 34.00 in United States Antimony on September 1, 2024 and sell it today you would earn a total of 42.00 from holding United States Antimony or generate 123.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
United States Antimony vs. Group Eleven Resources
Performance |
| Timeline |
| United States Antimony |
| Group Eleven Resources |
United States and Group Eleven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Group Eleven
The main advantage of trading using opposite United States and Group Eleven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Group Eleven 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 Group Eleven will offset losses from the drop in Group Eleven's long position.| United States vs. Syrah Resources Limited | United States vs. Nouveau Monde Graphite | United States vs. Trilogy Metals | United States vs. Global Atomic Corp |
| Group Eleven vs. Tinka Resources Limited | Group Eleven vs. Neo Battery Materials | Group Eleven vs. United States Antimony | Group Eleven vs. NioCorp Developments Ltd |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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