Correlation Between Anglo American and Accent Resources
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By analyzing existing cross correlation between Anglo American plc and Accent Resources NL, you can compare the effects of market volatilities on Anglo American and Accent Resources 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 Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and Accent Resources.
Diversification Opportunities for Anglo American and Accent Resources
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anglo and Accent is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American plc and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources 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 Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Anglo American i.e., Anglo American and Accent Resources go up and down completely randomly.
Pair Corralation between Anglo American and Accent Resources
Assuming the 90 days trading horizon Anglo American plc is expected to under-perform the Accent Resources. But the stock apears to be less risky and, when comparing its historical volatility, Anglo American plc is 52.22 times less risky than Accent Resources. The stock trades about -0.02 of its potential returns per unit of risk. The Accent Resources NL is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.15 in Accent Resources NL on September 24, 2024 and sell it today you would earn a total of 0.95 from holding Accent Resources NL or generate 633.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anglo American plc vs. Accent Resources NL
Performance |
Timeline |
Anglo American plc |
Accent Resources |
Anglo American and Accent Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anglo American and Accent Resources
The main advantage of trading using opposite Anglo American and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo American position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.Anglo American vs. Rio Tinto Group | Anglo American vs. Liontown Resources Limited | Anglo American vs. NEXA RESOURCES SA | Anglo American vs. STRAITS TRADG SD |
Accent Resources vs. Rio Tinto Group | Accent Resources vs. Anglo American plc | Accent Resources vs. Liontown Resources Limited | Accent Resources vs. NEXA RESOURCES SA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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