Correlation Between Anglo Eastern and Beowulf Mining
Can any of the company-specific risk be diversified away by investing in both Anglo Eastern and Beowulf Mining 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 Eastern and Beowulf Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo Eastern Plantations PLC and Beowulf Mining, you can compare the effects of market volatilities on Anglo Eastern and Beowulf Mining 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 Eastern with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Eastern and Beowulf Mining.
Diversification Opportunities for Anglo Eastern and Beowulf Mining
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anglo and Beowulf is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Eastern Plantations PLC and Beowulf Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining and Anglo Eastern 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 Eastern Plantations PLC are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining has no effect on the direction of Anglo Eastern i.e., Anglo Eastern and Beowulf Mining go up and down completely randomly.
Pair Corralation between Anglo Eastern and Beowulf Mining
Assuming the 90 days trading horizon Anglo Eastern Plantations PLC is expected to generate 0.81 times more return on investment than Beowulf Mining. However, Anglo Eastern Plantations PLC is 1.23 times less risky than Beowulf Mining. It trades about 0.1 of its potential returns per unit of risk. Beowulf Mining is currently generating about 0.03 per unit of risk. If you would invest 120,467 in Anglo Eastern Plantations PLC on September 9, 2025 and sell it today you would earn a total of 16,033 from holding Anglo Eastern Plantations PLC or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo Eastern Plantations PLC vs. Beowulf Mining
Performance |
| Timeline |
| Anglo Eastern Planta |
| Beowulf Mining |
Anglo Eastern and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo Eastern and Beowulf Mining
The main advantage of trading using opposite Anglo Eastern and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Eastern position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Anglo Eastern vs. Light Science Technologies | Anglo Eastern vs. Aptitude Software Group | Anglo Eastern vs. Micron Technology | Anglo Eastern vs. Taiwan Semiconductor Manufacturing |
| Beowulf Mining vs. Martin Marietta Materials | Beowulf Mining vs. CAP LEASE AVIATION | Beowulf Mining vs. Universal Music Group | Beowulf Mining vs. Wheaton Precious Metals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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