Correlation Between Ascot Resources and Meridian Mining
Can any of the company-specific risk be diversified away by investing in both Ascot Resources and Meridian 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 Ascot Resources and Meridian Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascot Resources and Meridian Mining UK, you can compare the effects of market volatilities on Ascot Resources and Meridian 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 Ascot Resources with a short position of Meridian Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascot Resources and Meridian Mining.
Diversification Opportunities for Ascot Resources and Meridian Mining
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascot and Meridian is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ascot Resources and Meridian Mining UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Mining UK and Ascot 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 Ascot Resources are associated (or correlated) with Meridian Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Mining UK has no effect on the direction of Ascot Resources i.e., Ascot Resources and Meridian Mining go up and down completely randomly.
Pair Corralation between Ascot Resources and Meridian Mining
Assuming the 90 days trading horizon Ascot Resources is expected to under-perform the Meridian Mining. In addition to that, Ascot Resources is 2.47 times more volatile than Meridian Mining UK. It trades about -0.04 of its total potential returns per unit of risk. Meridian Mining UK is currently generating about 0.1 per unit of volatility. If you would invest 63.00 in Meridian Mining UK on April 23, 2025 and sell it today you would earn a total of 12.00 from holding Meridian Mining UK or generate 19.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ascot Resources vs. Meridian Mining UK
Performance |
Timeline |
Ascot Resources |
Meridian Mining UK |
Ascot Resources and Meridian Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ascot Resources and Meridian Mining
The main advantage of trading using opposite Ascot Resources and Meridian Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascot Resources position performs unexpectedly, Meridian 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 Meridian Mining will offset losses from the drop in Meridian Mining's long position.Ascot Resources vs. Boardwalktech Software Corp | Ascot Resources vs. Western Copper and | Ascot Resources vs. Canlan Ice Sports | Ascot Resources vs. Mako Mining Corp |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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