Correlation Between Metals Exploration and AfriTin Mining
Can any of the company-specific risk be diversified away by investing in both Metals Exploration and AfriTin 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 Metals Exploration and AfriTin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metals Exploration Plc and AfriTin Mining, you can compare the effects of market volatilities on Metals Exploration and AfriTin 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 Metals Exploration with a short position of AfriTin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metals Exploration and AfriTin Mining.
Diversification Opportunities for Metals Exploration and AfriTin Mining
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Metals and AfriTin is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Metals Exploration Plc and AfriTin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfriTin Mining and Metals Exploration 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 Metals Exploration Plc are associated (or correlated) with AfriTin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfriTin Mining has no effect on the direction of Metals Exploration i.e., Metals Exploration and AfriTin Mining go up and down completely randomly.
Pair Corralation between Metals Exploration and AfriTin Mining
Assuming the 90 days trading horizon Metals Exploration is expected to generate 2.88 times less return on investment than AfriTin Mining. In addition to that, Metals Exploration is 1.01 times more volatile than AfriTin Mining. It trades about 0.0 of its total potential returns per unit of risk. AfriTin Mining is currently generating about 0.01 per unit of volatility. If you would invest 340.00 in AfriTin Mining on September 10, 2025 and sell it today you would lose (5.00) from holding AfriTin Mining or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metals Exploration Plc vs. AfriTin Mining
Performance |
| Timeline |
| Metals Exploration Plc |
| AfriTin Mining |
Metals Exploration and AfriTin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metals Exploration and AfriTin Mining
The main advantage of trading using opposite Metals Exploration and AfriTin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metals Exploration position performs unexpectedly, AfriTin 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 AfriTin Mining will offset losses from the drop in AfriTin Mining's long position.| Metals Exploration vs. Antofagasta PLC | Metals Exploration vs. EVRAZ plc | Metals Exploration vs. Atalaya Mining | Metals Exploration vs. Thor Explorations |
| AfriTin Mining vs. Arrow Electronics | AfriTin Mining vs. Hochschild Mining plc | AfriTin Mining vs. Resolute Mining Limited | AfriTin Mining vs. Silver Bullet Data |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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