Correlation Between AfriTin Mining and Balfour Beatty
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining and Balfour Beatty 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 AfriTin Mining and Balfour Beatty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and Balfour Beatty plc, you can compare the effects of market volatilities on AfriTin Mining and Balfour Beatty 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 AfriTin Mining with a short position of Balfour Beatty. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and Balfour Beatty.
Diversification Opportunities for AfriTin Mining and Balfour Beatty
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AfriTin and Balfour is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and Balfour Beatty plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balfour Beatty plc and AfriTin 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 AfriTin Mining are associated (or correlated) with Balfour Beatty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balfour Beatty plc has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and Balfour Beatty go up and down completely randomly.
Pair Corralation between AfriTin Mining and Balfour Beatty
Assuming the 90 days trading horizon AfriTin Mining is expected to under-perform the Balfour Beatty. In addition to that, AfriTin Mining is 2.47 times more volatile than Balfour Beatty plc. It trades about -0.04 of its total potential returns per unit of risk. Balfour Beatty plc is currently generating about 0.05 per unit of volatility. If you would invest 32,851 in Balfour Beatty plc on September 28, 2024 and sell it today you would earn a total of 12,509 from holding Balfour Beatty plc or generate 38.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AfriTin Mining vs. Balfour Beatty plc
Performance |
Timeline |
AfriTin Mining |
Balfour Beatty plc |
AfriTin Mining and Balfour Beatty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AfriTin Mining and Balfour Beatty
The main advantage of trading using opposite AfriTin Mining and Balfour Beatty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining position performs unexpectedly, Balfour Beatty 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 Balfour Beatty will offset losses from the drop in Balfour Beatty's long position.AfriTin Mining vs. Universal Display Corp | AfriTin Mining vs. Lords Grp Trading | AfriTin Mining vs. Gamma Communications PLC | AfriTin Mining vs. Aurora Investment Trust |
Balfour Beatty vs. Berkshire Hathaway | Balfour Beatty vs. Samsung Electronics Co | Balfour Beatty vs. Samsung Electronics Co | Balfour Beatty vs. Chocoladefabriken Lindt Spruengli |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |