Correlation Between Lupaka Gold and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Lupaka Gold and Angkor Resources 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 Lupaka Gold and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lupaka Gold Corp and Angkor Resources Corp, you can compare the effects of market volatilities on Lupaka Gold and Angkor 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 Lupaka Gold with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lupaka Gold and Angkor Resources.
Diversification Opportunities for Lupaka Gold and Angkor Resources
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lupaka and Angkor is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lupaka Gold Corp and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp and Lupaka Gold 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 Lupaka Gold Corp are associated (or correlated) with Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Lupaka Gold i.e., Lupaka Gold and Angkor Resources go up and down completely randomly.
Pair Corralation between Lupaka Gold and Angkor Resources
Assuming the 90 days horizon Lupaka Gold Corp is expected to generate 0.93 times more return on investment than Angkor Resources. However, Lupaka Gold Corp is 1.08 times less risky than Angkor Resources. It trades about 0.12 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.01 per unit of risk. If you would invest 5.00 in Lupaka Gold Corp on September 6, 2024 and sell it today you would earn a total of 2.00 from holding Lupaka Gold Corp or generate 40.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lupaka Gold Corp vs. Angkor Resources Corp
Performance |
Timeline |
Lupaka Gold Corp |
Angkor Resources Corp |
Lupaka Gold and Angkor Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lupaka Gold and Angkor Resources
The main advantage of trading using opposite Lupaka Gold and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lupaka Gold position performs unexpectedly, Angkor 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.Lupaka Gold vs. Cogeco Communications | Lupaka Gold vs. Electra Battery Materials | Lupaka Gold vs. Quipt Home Medical | Lupaka Gold vs. Eddy Smart Home |
Angkor Resources vs. Lupaka Gold Corp | Angkor Resources vs. Avrupa Minerals | Angkor Resources vs. Asiabasemetals |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |