Correlation Between Minco Capital and Angkor Resources

Can any of the company-specific risk be diversified away by investing in both Minco Capital 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 Minco Capital and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Minco Capital Corp and Angkor Resources Corp, you can compare the effects of market volatilities on Minco Capital 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 Minco Capital with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minco Capital and Angkor Resources.

Diversification Opportunities for Minco Capital and Angkor Resources

0.1

Correlation Coefficient

Minco Capital  Angkor Resources

Average diversification

The 3 months correlation between Minco and Angkor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Minco Capital 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 Minco Capital 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 Minco Capital 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 Minco Capital i.e., Minco Capital and Angkor Resources go up and down completely randomly.

Pair Corralation between Minco Capital and Angkor Resources

Assuming the 90 days horizon Minco Capital is expected to generate 1.1 times less return on investment than Angkor Resources. In addition to that, Minco Capital is 1.08 times more volatile than Angkor Resources Corp. It trades about 0.03 of its total potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.04 per unit of volatility. If you would invest  8.00  in Angkor Resources Corp on September 11, 2024 and sell it today you would earn a total of  1.50  from holding Angkor Resources Corp or generate 18.75% return on investment over 90 days.

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

Minco Capital Corp  vs.  Angkor Resources Corp

Minco Capital Corp

Risk-Adjusted Performance

1 of 100

Very 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 unfluctuating basic indicators, Minco Capital may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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.

Pair Trading with Minco Capital and Angkor Resources

The main advantage of trading using opposite Minco Capital and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minco Capital 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.

The idea behind Minco Capital Corp and Angkor Resources 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.