Correlation Between Anglo American and Clicks
Can any of the company-specific risk be diversified away by investing in both Anglo American and Clicks 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 Clicks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo American Platinum and Clicks, you can compare the effects of market volatilities on Anglo American and Clicks 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 Clicks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and Clicks.
Diversification Opportunities for Anglo American and Clicks
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anglo and Clicks is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American Platinum and Clicks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clicks 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 Platinum are associated (or correlated) with Clicks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clicks has no effect on the direction of Anglo American i.e., Anglo American and Clicks go up and down completely randomly.
Pair Corralation between Anglo American and Clicks
Assuming the 90 days trading horizon Anglo American Platinum is expected to under-perform the Clicks. In addition to that, Anglo American is 2.56 times more volatile than Clicks. It trades about 0.0 of its total potential returns per unit of risk. Clicks is currently generating about 0.13 per unit of volatility. If you would invest 2,931,957 in Clicks on September 24, 2024 and sell it today you would earn a total of 926,343 from holding Clicks or generate 31.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anglo American Platinum vs. Clicks
Performance |
Timeline |
Anglo American Platinum |
Clicks |
Anglo American and Clicks Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anglo American and Clicks
The main advantage of trading using opposite Anglo American and Clicks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo American position performs unexpectedly, Clicks 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 Clicks will offset losses from the drop in Clicks' long position.Anglo American vs. Impala Platinum Holdings | Anglo American vs. Gemfields Group | Anglo American vs. Sasol Ltd Bee | Anglo American vs. Growthpoint Properties |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |