Correlation Between Aston Minerals and Thunderstruck Resources
Can any of the company-specific risk be diversified away by investing in both Aston Minerals and Thunderstruck 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 Aston Minerals and Thunderstruck Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Minerals and Thunderstruck Resources, you can compare the effects of market volatilities on Aston Minerals and Thunderstruck 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 Aston Minerals with a short position of Thunderstruck Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Minerals and Thunderstruck Resources.
Diversification Opportunities for Aston Minerals and Thunderstruck Resources
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aston and Thunderstruck is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aston Minerals and Thunderstruck Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunderstruck Resources and Aston Minerals 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 Aston Minerals are associated (or correlated) with Thunderstruck Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunderstruck Resources has no effect on the direction of Aston Minerals i.e., Aston Minerals and Thunderstruck Resources go up and down completely randomly.
Pair Corralation between Aston Minerals and Thunderstruck Resources
Assuming the 90 days horizon Aston Minerals is expected to generate 4.86 times more return on investment than Thunderstruck Resources. However, Aston Minerals is 4.86 times more volatile than Thunderstruck Resources. It trades about 0.1 of its potential returns per unit of risk. Thunderstruck Resources is currently generating about 0.07 per unit of risk. If you would invest 2.00 in Aston Minerals on August 29, 2024 and sell it today you would lose (1.25) from holding Aston Minerals or give up 62.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aston Minerals vs. Thunderstruck Resources
Performance |
| Timeline |
| Aston Minerals |
| Thunderstruck Resources |
Aston Minerals and Thunderstruck Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston Minerals and Thunderstruck Resources
The main advantage of trading using opposite Aston Minerals and Thunderstruck Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Minerals position performs unexpectedly, Thunderstruck 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 Thunderstruck Resources will offset losses from the drop in Thunderstruck Resources' long position.| Aston Minerals vs. Thunderstruck Resources | Aston Minerals vs. Tarku Resources | Aston Minerals vs. Eminent Gold Corp | Aston Minerals vs. Murchison Minerals |
| Thunderstruck Resources vs. Rockridge Resources | Thunderstruck Resources vs. Vital Metals Limited | Thunderstruck Resources vs. Ameriwest Lithium | Thunderstruck Resources vs. Osisko Metals Incorporated |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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