Correlation Between AngloGold Ashanti and Cardero Resource
Can any of the company-specific risk be diversified away by investing in both AngloGold Ashanti and Cardero Resource 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 AngloGold Ashanti and Cardero Resource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AngloGold Ashanti plc and Cardero Resource Corp, you can compare the effects of market volatilities on AngloGold Ashanti and Cardero Resource 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 AngloGold Ashanti with a short position of Cardero Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngloGold Ashanti and Cardero Resource.
Diversification Opportunities for AngloGold Ashanti and Cardero Resource
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AngloGold and Cardero is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AngloGold Ashanti plc and Cardero Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardero Resource Corp and AngloGold Ashanti 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 AngloGold Ashanti plc are associated (or correlated) with Cardero Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardero Resource Corp has no effect on the direction of AngloGold Ashanti i.e., AngloGold Ashanti and Cardero Resource go up and down completely randomly.
Pair Corralation between AngloGold Ashanti and Cardero Resource
If you would invest 2,134 in AngloGold Ashanti plc on January 24, 2024 and sell it today you would earn a total of 69.00 from holding AngloGold Ashanti plc or generate 3.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
AngloGold Ashanti plc vs. Cardero Resource Corp
Performance |
Timeline |
AngloGold Ashanti plc |
Cardero Resource Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AngloGold Ashanti and Cardero Resource Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AngloGold Ashanti and Cardero Resource
The main advantage of trading using opposite AngloGold Ashanti and Cardero Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngloGold Ashanti position performs unexpectedly, Cardero Resource 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 Cardero Resource will offset losses from the drop in Cardero Resource's long position.The idea behind AngloGold Ashanti plc and Cardero Resource Corp 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.Cardero Resource vs. Titan International | Cardero Resource vs. CDW Corp | Cardero Resource vs. Emerson Electric | Cardero Resource vs. MYR Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |