Correlation Between XLMedia PLC and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Anglo Asian 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 XLMedia PLC and Anglo Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Anglo Asian Mining, you can compare the effects of market volatilities on XLMedia PLC and Anglo Asian 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 XLMedia PLC with a short position of Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Anglo Asian.
Diversification Opportunities for XLMedia PLC and Anglo Asian
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between XLMedia and Anglo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Anglo Asian go up and down completely randomly.
Pair Corralation between XLMedia PLC and Anglo Asian
Assuming the 90 days trading horizon XLMedia PLC is expected to generate 0.67 times more return on investment than Anglo Asian. However, XLMedia PLC is 1.49 times less risky than Anglo Asian. It trades about 0.35 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about 0.13 per unit of risk. If you would invest 930.00 in XLMedia PLC on November 6, 2024 and sell it today you would earn a total of 135.00 from holding XLMedia PLC or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Anglo Asian Mining
Performance |
| Timeline |
| XLMedia PLC |
| Anglo Asian Mining |
XLMedia PLC and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Anglo Asian
The main advantage of trading using opposite XLMedia PLC and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| XLMedia PLC vs. Inspiration Healthcare Group | XLMedia PLC vs. Premier Foods PLC | XLMedia PLC vs. Gamma Communications PLC | XLMedia PLC vs. Bellevue Healthcare Trust |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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