Correlation Between Magnum Goldcorp and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Magnum Goldcorp 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 Magnum Goldcorp and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnum Goldcorp and Angkor Resources Corp, you can compare the effects of market volatilities on Magnum Goldcorp 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 Magnum Goldcorp with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnum Goldcorp and Angkor Resources.
Diversification Opportunities for Magnum Goldcorp and Angkor Resources
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magnum and Angkor is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Magnum Goldcorp 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 Magnum Goldcorp 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 Magnum Goldcorp 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 Magnum Goldcorp i.e., Magnum Goldcorp and Angkor Resources go up and down completely randomly.
Pair Corralation between Magnum Goldcorp and Angkor Resources
Assuming the 90 days horizon Magnum Goldcorp is expected to under-perform the Angkor Resources. In addition to that, Magnum Goldcorp is 3.78 times more volatile than Angkor Resources Corp. It trades about 0.0 of its total potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.1 per unit of volatility. If you would invest 9.00 in Angkor Resources Corp on September 5, 2024 and sell it today you would earn a total of 1.00 from holding Angkor Resources Corp or generate 11.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Magnum Goldcorp vs. Angkor Resources Corp
Performance |
Timeline |
Magnum Goldcorp |
Angkor Resources Corp |
Magnum Goldcorp and Angkor Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Magnum Goldcorp and Angkor Resources
The main advantage of trading using opposite Magnum Goldcorp and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnum Goldcorp 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.Magnum Goldcorp vs. Canso Credit Trust | Magnum Goldcorp vs. Precision Drilling | Magnum Goldcorp vs. Bank of Nova | Magnum Goldcorp vs. Income Financial Trust |
Angkor Resources vs. First Majestic Silver | Angkor Resources vs. Ivanhoe Energy | Angkor Resources vs. Orezone Gold Corp | Angkor Resources vs. Faraday Copper Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |