Correlation Between Angkor Resources and Maple Gold

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

By analyzing existing cross correlation between Angkor Resources Corp and Maple Gold Mines, you can compare the effects of market volatilities on Angkor Resources and Maple 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 Angkor Resources with a short position of Maple Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Maple Gold.

Diversification Opportunities for Angkor Resources and Maple Gold

-0.17

Correlation Coefficient

Angkor Resources  Maple Gold

Good diversification

The 3 months correlation between Angkor and Maple is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Maple Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Gold Mines and Angkor 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 Angkor Resources Corp are associated (or correlated) with Maple Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Gold Mines has no effect on the direction of Angkor Resources i.e., Angkor Resources and Maple Gold go up and down completely randomly.

Pair Corralation between Angkor Resources and Maple Gold

Assuming the 90 days horizon Angkor Resources Corp is expected to generate 0.99 times more return on investment than Maple Gold. However, Angkor Resources Corp is 1.01 times less risky than Maple Gold. It trades about 0.31 of its potential returns per unit of risk. Maple Gold Mines is currently generating about 0.04 per unit of risk. If you would invest  6.01  in Angkor Resources Corp on December 20, 2024 and sell it today you would earn a total of  12.99  from holding Angkor Resources Corp or generate 216.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Angkor Resources Corp  vs.  Maple Gold Mines

Angkor Resources Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Angkor Resources Corp are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Angkor Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Maple Gold Mines

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maple Gold Mines are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Maple Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Angkor Resources and Maple Gold

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

The idea behind Angkor Resources Corp and Maple Gold Mines 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.