Correlation Between Anfield Resources and MYFAIR GOLD
Can any of the company-specific risk be diversified away by investing in both Anfield Resources and MYFAIR GOLD 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 Anfield Resources and MYFAIR GOLD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anfield Resources and MYFAIR GOLD P, you can compare the effects of market volatilities on Anfield Resources and MYFAIR GOLD 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 Anfield Resources with a short position of MYFAIR GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anfield Resources and MYFAIR GOLD.
Diversification Opportunities for Anfield Resources and MYFAIR GOLD
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anfield and MYFAIR is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Anfield Resources and MYFAIR GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYFAIR GOLD P and Anfield Resources 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 Anfield Resources are associated (or correlated) with MYFAIR GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYFAIR GOLD P has no effect on the direction of Anfield Resources i.e., Anfield Resources and MYFAIR GOLD go up and down completely randomly.
Pair Corralation between Anfield Resources and MYFAIR GOLD
Assuming the 90 days trading horizon Anfield Resources is expected to generate 8.3 times more return on investment than MYFAIR GOLD. However, Anfield Resources is 8.3 times more volatile than MYFAIR GOLD P. It trades about 0.11 of its potential returns per unit of risk. MYFAIR GOLD P is currently generating about 0.04 per unit of risk. If you would invest 4.60 in Anfield Resources on December 27, 2024 and sell it today you would earn a total of 1.35 from holding Anfield Resources or generate 29.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anfield Resources vs. MYFAIR GOLD P
Performance |
Timeline |
Anfield Resources |
MYFAIR GOLD P |
Anfield Resources and MYFAIR GOLD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anfield Resources and MYFAIR GOLD
The main advantage of trading using opposite Anfield Resources and MYFAIR GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anfield Resources position performs unexpectedly, MYFAIR GOLD 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 MYFAIR GOLD will offset losses from the drop in MYFAIR GOLD's long position.Anfield Resources vs. CyberArk Software | Anfield Resources vs. COPLAND ROAD CAPITAL | Anfield Resources vs. British American Tobacco | Anfield Resources vs. Sqs Software Quality |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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