Correlation Between Almaden Minerals and Anhui Conch
Can any of the company-specific risk be diversified away by investing in both Almaden Minerals and Anhui Conch 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 Almaden Minerals and Anhui Conch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almaden Minerals and Anhui Conch Cement, you can compare the effects of market volatilities on Almaden Minerals and Anhui Conch 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 Almaden Minerals with a short position of Anhui Conch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almaden Minerals and Anhui Conch.
Diversification Opportunities for Almaden Minerals and Anhui Conch
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Almaden and Anhui is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and Anhui Conch Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Conch Cement and Almaden 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 Almaden Minerals are associated (or correlated) with Anhui Conch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Conch Cement has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and Anhui Conch go up and down completely randomly.
Pair Corralation between Almaden Minerals and Anhui Conch
If you would invest 1,094 in Anhui Conch Cement on February 15, 2024 and sell it today you would earn a total of 146.00 from holding Anhui Conch Cement or generate 13.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.55% |
Values | Daily Returns |
Almaden Minerals vs. Anhui Conch Cement
Performance |
Timeline |
Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Anhui Conch Cement |
Almaden Minerals and Anhui Conch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Almaden Minerals and Anhui Conch
The main advantage of trading using opposite Almaden Minerals and Anhui Conch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almaden Minerals position performs unexpectedly, Anhui Conch 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 Anhui Conch will offset losses from the drop in Anhui Conch's long position.Almaden Minerals vs. Antioquia Gold | Almaden Minerals vs. Asante Gold | Almaden Minerals vs. Bluestone Resources | Almaden Minerals vs. Big Ridge Gold |
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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 Stocks Directory module to find actively traded stocks across global markets.
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