Correlation Between Angkor Resources and Minco Capital

Can any of the company-specific risk be diversified away by investing in both Angkor Resources and Minco Capital 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 Minco Capital 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 Minco Capital Corp, you can compare the effects of market volatilities on Angkor Resources and Minco Capital 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 Minco Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angkor Resources and Minco Capital.

Diversification Opportunities for Angkor Resources and Minco Capital

0.13

Correlation Coefficient

Angkor Resources  Minco Capital

Average diversification

The 3 months correlation between Angkor and Minco is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp and Minco Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minco Capital Corp 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 Minco Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minco Capital Corp has no effect on the direction of Angkor Resources i.e., Angkor Resources and Minco Capital go up and down completely randomly.

Pair Corralation between Angkor Resources and Minco Capital

Assuming the 90 days horizon Angkor Resources Corp is expected to generate 1.14 times more return on investment than Minco Capital. However, Angkor Resources is 1.14 times more volatile than Minco Capital Corp. It trades about 0.03 of its potential returns per unit of risk. Minco Capital Corp is currently generating about 0.03 per unit of risk. If you would invest  9.00  in Angkor Resources Corp on September 7, 2024 and sell it today you would earn a total of  0.00  from holding Angkor Resources Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Angkor Resources Corp  vs.  Minco Capital Corp

Angkor Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Angkor Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Minco Capital Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Minco Capital Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Minco Capital may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Angkor Resources and Minco Capital

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

The idea behind Angkor Resources Corp and Minco Capital Corp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.