Correlation Between Almaden Minerals and AngloGold Ashanti

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Almaden Minerals and AngloGold Ashanti 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 AngloGold Ashanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almaden Minerals and AngloGold Ashanti Plc, you can compare the effects of market volatilities on Almaden Minerals and AngloGold Ashanti 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 AngloGold Ashanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almaden Minerals and AngloGold Ashanti.

Diversification Opportunities for Almaden Minerals and AngloGold Ashanti

0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Almaden and AngloGold is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and AngloGold Ashanti Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngloGold Ashanti Plc 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 AngloGold Ashanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngloGold Ashanti Plc has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and AngloGold Ashanti go up and down completely randomly.

Pair Corralation between Almaden Minerals and AngloGold Ashanti

Considering the 90-day investment horizon Almaden Minerals is expected to generate 1.91 times less return on investment than AngloGold Ashanti. In addition to that, Almaden Minerals is 1.07 times more volatile than AngloGold Ashanti Plc. It trades about 0.01 of its total potential returns per unit of risk. AngloGold Ashanti Plc is currently generating about 0.03 per unit of volatility. If you would invest  1,901  in AngloGold Ashanti Plc on December 3, 2023 and sell it today you would earn a total of  49.00  from holding AngloGold Ashanti Plc or generate 2.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Almaden Minerals  vs.  AngloGold Ashanti Plc

 Performance 
       Timeline  
Almaden Minerals 

Risk-Adjusted Performance

1 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Almaden Minerals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Almaden Minerals is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
AngloGold Ashanti Plc 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in AngloGold Ashanti Plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, AngloGold Ashanti is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Almaden Minerals and AngloGold Ashanti Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Almaden Minerals and AngloGold Ashanti

The main advantage of trading using opposite Almaden Minerals and AngloGold Ashanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almaden Minerals position performs unexpectedly, AngloGold Ashanti 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 AngloGold Ashanti will offset losses from the drop in AngloGold Ashanti's long position.
The idea behind Almaden Minerals and AngloGold Ashanti Plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Bonds Directory
Find actively traded corporate debentures issued by US companies
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Content Syndication
Quickly integrate customizable finance content to your own investment portal