Correlation Between Metro Mining and Argosy Minerals
Can any of the company-specific risk be diversified away by investing in both Metro Mining and Argosy Minerals 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 Metro Mining and Argosy Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metro Mining and Argosy Minerals, you can compare the effects of market volatilities on Metro Mining and Argosy Minerals 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 Metro Mining with a short position of Argosy Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Mining and Argosy Minerals.
Diversification Opportunities for Metro Mining and Argosy Minerals
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Metro and Argosy is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Metro Mining and Argosy Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Minerals and Metro Mining 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 Metro Mining are associated (or correlated) with Argosy Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Minerals has no effect on the direction of Metro Mining i.e., Metro Mining and Argosy Minerals go up and down completely randomly.
Pair Corralation between Metro Mining and Argosy Minerals
Assuming the 90 days trading horizon Metro Mining is expected to under-perform the Argosy Minerals. But the stock apears to be less risky and, when comparing its historical volatility, Metro Mining is 1.33 times less risky than Argosy Minerals. The stock trades about -0.06 of its potential returns per unit of risk. The Argosy Minerals is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2.80 in Argosy Minerals on October 6, 2024 and sell it today you would earn a total of 0.30 from holding Argosy Minerals or generate 10.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Metro Mining vs. Argosy Minerals
Performance |
Timeline |
Metro Mining |
Argosy Minerals |
Metro Mining and Argosy Minerals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metro Mining and Argosy Minerals
The main advantage of trading using opposite Metro Mining and Argosy Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Mining position performs unexpectedly, Argosy Minerals 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 Argosy Minerals will offset losses from the drop in Argosy Minerals' long position.Metro Mining vs. REGAL ASIAN INVESTMENTS | Metro Mining vs. Super Retail Group | Metro Mining vs. Dexus Convenience Retail | Metro Mining vs. A1 Investments Resources |
Argosy Minerals vs. Hammer Metals | Argosy Minerals vs. Centaurus Metals | Argosy Minerals vs. Stelar Metals | Argosy Minerals vs. Centrex Metals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Stocks Directory Find actively traded stocks across global markets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |