Correlation Between Northcliff Resources and Angkor Resources

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

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

Diversification Opportunities for Northcliff Resources and Angkor Resources

0.0

Correlation Coefficient

Northcliff Resources  Angkor Resources

Pay attention - limited upside

The 3 months correlation between Northcliff and Angkor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northcliff Resources 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 Northcliff 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 Northcliff Resources 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 Northcliff Resources i.e., Northcliff Resources and Angkor Resources go up and down completely randomly.

Pair Corralation between Northcliff Resources and Angkor Resources

If you would invest  2.00  in Northcliff Resources on September 6, 2024 and sell it today you would earn a total of  1.50  from holding Northcliff Resources or generate 75.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Northcliff Resources  vs.  Angkor Resources Corp

Northcliff Resources

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Northcliff Resources are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, Northcliff Resources displayed solid returns over the last few months and may actually be approaching a breakup point.

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 fairly stable basic indicators, Angkor Resources is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Northcliff Resources and Angkor Resources

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

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.