Correlation Between ANGLO ASIAN and Thyssenkrupp

Can any of the company-specific risk be diversified away by investing in both ANGLO ASIAN and Thyssenkrupp 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 ANGLO ASIAN and Thyssenkrupp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ANGLO ASIAN MINING and thyssenkrupp AG, you can compare the effects of market volatilities on ANGLO ASIAN and Thyssenkrupp 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 ANGLO ASIAN with a short position of Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLO ASIAN and Thyssenkrupp.

Diversification Opportunities for ANGLO ASIAN and Thyssenkrupp

0.0

Correlation Coefficient

ANGLO ASIAN  Thyssenkrupp

Pay attention - limited upside

The 3 months correlation between ANGLO and Thyssenkrupp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANGLO ASIAN MINING and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG and ANGLO ASIAN 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 ANGLO ASIAN MINING are associated (or correlated) with Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of ANGLO ASIAN i.e., ANGLO ASIAN and Thyssenkrupp go up and down completely randomly.

Pair Corralation between ANGLO ASIAN and Thyssenkrupp

If you would invest  0.00  in thyssenkrupp AG on October 23, 2024 and sell it today you would earn a total of  0.00  from holding thyssenkrupp AG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	6.25%
Values	Daily Returns

ANGLO ASIAN MINING  vs.  thyssenkrupp AG

ANGLO ASIAN MINING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANGLO ASIAN MINING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

thyssenkrupp AG

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days thyssenkrupp AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Thyssenkrupp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ANGLO ASIAN and Thyssenkrupp

The main advantage of trading using opposite ANGLO ASIAN and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLO ASIAN position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.

The idea behind ANGLO ASIAN MINING and thyssenkrupp AG 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.