Correlation Between Anglo American and Boliden AB
Can any of the company-specific risk be diversified away by investing in both Anglo American and Boliden AB 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 American and Boliden AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo American plc and Boliden AB, you can compare the effects of market volatilities on Anglo American and Boliden AB 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 American with a short position of Boliden AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and Boliden AB.
Diversification Opportunities for Anglo American and Boliden AB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anglo and Boliden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American plc and Boliden AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boliden AB and Anglo American 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 American plc are associated (or correlated) with Boliden AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boliden AB has no effect on the direction of Anglo American i.e., Anglo American and Boliden AB go up and down completely randomly.
Pair Corralation between Anglo American and Boliden AB
If you would invest 2,900 in Anglo American plc on December 1, 2024 and sell it today you would earn a total of 189.00 from holding Anglo American plc or generate 6.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Anglo American plc vs. Boliden AB
Performance |
Timeline |
Anglo American plc |
Boliden AB |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Anglo American and Boliden AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anglo American and Boliden AB
The main advantage of trading using opposite Anglo American and Boliden AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo American position performs unexpectedly, Boliden AB 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 Boliden AB will offset losses from the drop in Boliden AB's long position.Anglo American vs. Glencore PLC ADR | Anglo American vs. Fortescue Metals Group | Anglo American vs. South32 Limited | Anglo American vs. South32 ADR |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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