Correlation Between GoldMining and ACG Acquisition
Can any of the company-specific risk be diversified away by investing in both GoldMining and ACG Acquisition 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 GoldMining and ACG Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and ACG Acquisition Co, you can compare the effects of market volatilities on GoldMining and ACG Acquisition 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 GoldMining with a short position of ACG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and ACG Acquisition.
Diversification Opportunities for GoldMining and ACG Acquisition
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between GoldMining and ACG is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and ACG Acquisition Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Acquisition and GoldMining 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 GoldMining are associated (or correlated) with ACG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Acquisition has no effect on the direction of GoldMining i.e., GoldMining and ACG Acquisition go up and down completely randomly.
Pair Corralation between GoldMining and ACG Acquisition
Assuming the 90 days trading horizon GoldMining is expected to generate 46.8 times less return on investment than ACG Acquisition. But when comparing it to its historical volatility, GoldMining is 20.34 times less risky than ACG Acquisition. It trades about 0.03 of its potential returns per unit of risk. ACG Acquisition Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,045 in ACG Acquisition Co on September 12, 2024 and sell it today you would lose (535.00) from holding ACG Acquisition Co or give up 51.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.73% |
| Values | Daily Returns |
GoldMining vs. ACG Acquisition Co
Performance |
| Timeline |
| GoldMining |
| ACG Acquisition |
GoldMining and ACG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and ACG Acquisition
The main advantage of trading using opposite GoldMining and ACG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining position performs unexpectedly, ACG Acquisition 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 ACG Acquisition will offset losses from the drop in ACG Acquisition's long position.| GoldMining vs. Hong Kong Land | GoldMining vs. Neometals | GoldMining vs. Coor Service Management | GoldMining vs. Fidelity Sustainable USD |
| ACG Acquisition vs. Austevoll Seafood ASA | ACG Acquisition vs. Pentair PLC | ACG Acquisition vs. Alaska Air Group | ACG Acquisition vs. Cairn Homes PLC |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |