Correlation Between Argent and AH Vest
Can any of the company-specific risk be diversified away by investing in both Argent and AH Vest 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 Argent and AH Vest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argent and AH Vest Limited, you can compare the effects of market volatilities on Argent and AH Vest 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 Argent with a short position of AH Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argent and AH Vest.
Diversification Opportunities for Argent and AH Vest
Very weak diversification
The 3 months correlation between Argent and AHL is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Argent and AH Vest Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AH Vest Limited and Argent 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 Argent are associated (or correlated) with AH Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AH Vest Limited has no effect on the direction of Argent i.e., Argent and AH Vest go up and down completely randomly.
Pair Corralation between Argent and AH Vest
Assuming the 90 days trading horizon Argent is expected to generate 0.59 times more return on investment than AH Vest. However, Argent is 1.69 times less risky than AH Vest. It trades about 0.1 of its potential returns per unit of risk. AH Vest Limited is currently generating about -0.03 per unit of risk. If you would invest 152,097 in Argent on October 12, 2024 and sell it today you would earn a total of 112,903 from holding Argent or generate 74.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Argent vs. AH Vest Limited
Performance |
Timeline |
Argent |
AH Vest Limited |
Argent and AH Vest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Argent and AH Vest
The main advantage of trading using opposite Argent and AH Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argent position performs unexpectedly, AH Vest 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 AH Vest will offset losses from the drop in AH Vest's long position.Argent vs. Kumba Iron Ore | Argent vs. ArcelorMittal South Africa | Argent vs. Sasol Ltd Bee | Argent vs. Sabvest Capital |
AH Vest vs. British American Tobacco | AH Vest vs. Harmony Gold Mining | AH Vest vs. Astoria Investments | AH Vest vs. eMedia Holdings Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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