Correlation Between AngloGold Ashanti and IAMGold
Can any of the company-specific risk be diversified away by investing in both AngloGold Ashanti and IAMGold 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 AngloGold Ashanti and IAMGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AngloGold Ashanti plc and IAMGold, you can compare the effects of market volatilities on AngloGold Ashanti and IAMGold 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 AngloGold Ashanti with a short position of IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngloGold Ashanti and IAMGold.
Diversification Opportunities for AngloGold Ashanti and IAMGold
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AngloGold and IAMGold is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AngloGold Ashanti plc and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold and AngloGold Ashanti 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 AngloGold Ashanti plc are associated (or correlated) with IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of AngloGold Ashanti i.e., AngloGold Ashanti and IAMGold go up and down completely randomly.
Pair Corralation between AngloGold Ashanti and IAMGold
Allowing for the 90-day total investment horizon AngloGold Ashanti plc is expected to generate 1.03 times more return on investment than IAMGold. However, AngloGold Ashanti is 1.03 times more volatile than IAMGold. It trades about 0.03 of its potential returns per unit of risk. IAMGold is currently generating about 0.01 per unit of risk. If you would invest 2,355 in AngloGold Ashanti plc on February 7, 2024 and sell it today you would earn a total of 29.00 from holding AngloGold Ashanti plc or generate 1.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AngloGold Ashanti plc vs. IAMGold
Performance |
Timeline |
AngloGold Ashanti plc |
IAMGold |
AngloGold Ashanti and IAMGold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AngloGold Ashanti and IAMGold
The main advantage of trading using opposite AngloGold Ashanti and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngloGold Ashanti position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.AngloGold Ashanti vs. Harmony Gold Mining | AngloGold Ashanti vs. Eldorado Gold Corp | AngloGold Ashanti vs. Kinross Gold | AngloGold Ashanti vs. Pan American Silver |
IAMGold vs. Eldorado Gold Corp | IAMGold vs. Coeur Mining | IAMGold vs. Gold Resource | IAMGold vs. Alamos Gold |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |