Correlation Between Aston Minerals and Green Shift
Can any of the company-specific risk be diversified away by investing in both Aston Minerals and Green Shift 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 Aston Minerals and Green Shift into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Minerals and Green Shift Commodities, you can compare the effects of market volatilities on Aston Minerals and Green Shift 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 Aston Minerals with a short position of Green Shift. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Minerals and Green Shift.
Diversification Opportunities for Aston Minerals and Green Shift
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aston and Green is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aston Minerals and Green Shift Commodities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Shift Commodities and Aston Minerals 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 Aston Minerals are associated (or correlated) with Green Shift. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Shift Commodities has no effect on the direction of Aston Minerals i.e., Aston Minerals and Green Shift go up and down completely randomly.
Pair Corralation between Aston Minerals and Green Shift
Assuming the 90 days horizon Aston Minerals is expected to under-perform the Green Shift. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aston Minerals is 2.49 times less risky than Green Shift. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Green Shift Commodities is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3.40 in Green Shift Commodities on December 3, 2024 and sell it today you would lose (0.26) from holding Green Shift Commodities or give up 7.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aston Minerals vs. Green Shift Commodities
Performance |
Timeline |
Aston Minerals |
Green Shift Commodities |
Aston Minerals and Green Shift Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aston Minerals and Green Shift
The main advantage of trading using opposite Aston Minerals and Green Shift positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Minerals position performs unexpectedly, Green Shift 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 Green Shift will offset losses from the drop in Green Shift's long position.Aston Minerals vs. Thunderstruck Resources | Aston Minerals vs. Tarku Resources | Aston Minerals vs. Eminent Gold Corp | Aston Minerals vs. Murchison Minerals |
Green Shift vs. Procter Gamble | Green Shift vs. Adient PLC | Green Shift vs. Brunswick | Green Shift vs. World Houseware 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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