Correlation Between Anglo Asian and MTI Wireless

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Anglo Asian and MTI Wireless 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 Anglo Asian and MTI Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo Asian Mining and MTI Wireless Edge, you can compare the effects of market volatilities on Anglo Asian and MTI Wireless 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 Anglo Asian with a short position of MTI Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Asian and MTI Wireless.

Diversification Opportunities for Anglo Asian and MTI Wireless

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Anglo and MTI is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Asian Mining and MTI Wireless Edge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTI Wireless Edge and Anglo Asian 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 Anglo Asian Mining are associated (or correlated) with MTI Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTI Wireless Edge has no effect on the direction of Anglo Asian i.e., Anglo Asian and MTI Wireless go up and down completely randomly.

Pair Corralation between Anglo Asian and MTI Wireless

Assuming the 90 days trading horizon Anglo Asian Mining is expected to generate 1.21 times more return on investment than MTI Wireless. However, Anglo Asian is 1.21 times more volatile than MTI Wireless Edge. It trades about 0.1 of its potential returns per unit of risk. MTI Wireless Edge is currently generating about 0.03 per unit of risk. If you would invest  18,800  in Anglo Asian Mining on August 31, 2025 and sell it today you would earn a total of  4,300  from holding Anglo Asian Mining or generate 22.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Anglo Asian Mining  vs.  MTI Wireless Edge

 Performance 
       Timeline  
Anglo Asian Mining 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Anglo Asian Mining are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Anglo Asian exhibited solid returns over the last few months and may actually be approaching a breakup point.
MTI Wireless Edge 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in MTI Wireless Edge are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, MTI Wireless may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Anglo Asian and MTI Wireless Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anglo Asian and MTI Wireless

The main advantage of trading using opposite Anglo Asian and MTI Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Asian position performs unexpectedly, MTI Wireless 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 MTI Wireless will offset losses from the drop in MTI Wireless' long position.
The idea behind Anglo Asian Mining and MTI Wireless Edge 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Equity Valuation
Check real value of public entities based on technical and fundamental data
Stocks Directory
Find actively traded stocks across global markets