Correlation Between Antofagasta PLC and Katanga Mining
Can any of the company-specific risk be diversified away by investing in both Antofagasta PLC and Katanga Mining 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 Antofagasta PLC and Katanga Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antofagasta PLC and Katanga Mining Limited, you can compare the effects of market volatilities on Antofagasta PLC and Katanga Mining 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 Antofagasta PLC with a short position of Katanga Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antofagasta PLC and Katanga Mining.
Diversification Opportunities for Antofagasta PLC and Katanga Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Antofagasta and Katanga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Antofagasta PLC and Katanga Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katanga Mining and Antofagasta 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 Antofagasta PLC are associated (or correlated) with Katanga Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katanga Mining has no effect on the direction of Antofagasta PLC i.e., Antofagasta PLC and Katanga Mining go up and down completely randomly.
Pair Corralation between Antofagasta PLC and Katanga Mining
If you would invest 2,509 in Antofagasta PLC on January 25, 2024 and sell it today you would earn a total of 190.00 from holding Antofagasta PLC or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Antofagasta PLC vs. Katanga Mining Limited
Performance |
| Timeline |
| Antofagasta PLC |
| Katanga Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antofagasta PLC and Katanga Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antofagasta PLC and Katanga Mining
The main advantage of trading using opposite Antofagasta PLC and Katanga Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antofagasta PLC position performs unexpectedly, Katanga Mining 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 Katanga Mining will offset losses from the drop in Katanga Mining's long position.| Antofagasta PLC vs. Aguila American Gold | Antofagasta PLC vs. Imperial Metals | Antofagasta PLC vs. Bell Copper | Antofagasta PLC vs. Copper Fox Metals |
| Katanga Mining vs. Saia Inc | Katanga Mining vs. Willamette Valley Vineyards | Katanga Mining vs. BRC Inc | Katanga Mining vs. 51Talk Online Education |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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