Correlation Between MINCO SILVER and AIB Group
Can any of the company-specific risk be diversified away by investing in both MINCO SILVER and AIB Group 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 MINCO SILVER and AIB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINCO SILVER and AIB Group plc, you can compare the effects of market volatilities on MINCO SILVER and AIB Group 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 MINCO SILVER with a short position of AIB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and AIB Group.
Diversification Opportunities for MINCO SILVER and AIB Group
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between MINCO and AIB is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER and AIB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group plc and MINCO SILVER 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 MINCO SILVER are associated (or correlated) with AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group plc has no effect on the direction of MINCO SILVER i.e., MINCO SILVER and AIB Group go up and down completely randomly.
Pair Corralation between MINCO SILVER and AIB Group
Assuming the 90 days trading horizon MINCO SILVER is expected to under-perform the AIB Group. In addition to that, MINCO SILVER is 1.24 times more volatile than AIB Group plc. It trades about -0.1 of its total potential returns per unit of risk. AIB Group plc is currently generating about 0.21 per unit of volatility. If you would invest 484.00 in AIB Group plc on August 26, 2024 and sell it today you would earn a total of 53.00 from holding AIB Group plc or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINCO SILVER vs. AIB Group plc
Performance |
| Timeline |
| MINCO SILVER |
| AIB Group plc |
MINCO SILVER and AIB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINCO SILVER and AIB Group
The main advantage of trading using opposite MINCO SILVER and AIB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINCO SILVER position performs unexpectedly, AIB Group 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 AIB Group will offset losses from the drop in AIB Group's long position.| MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc |
| AIB Group vs. Coeur Mining | AIB Group vs. CEOTRONICS | AIB Group vs. MINCO SILVER | AIB Group vs. GALENA MINING 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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