Correlation Between GoldMining and Guild Esports
Can any of the company-specific risk be diversified away by investing in both GoldMining and Guild Esports 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 Guild Esports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Guild Esports Plc, you can compare the effects of market volatilities on GoldMining and Guild Esports 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 Guild Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Guild Esports.
Diversification Opportunities for GoldMining and Guild Esports
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GoldMining and Guild is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and Guild Esports Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Esports Plc 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 Guild Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Esports Plc has no effect on the direction of GoldMining i.e., GoldMining and Guild Esports go up and down completely randomly.
Pair Corralation between GoldMining and Guild Esports
Assuming the 90 days trading horizon GoldMining is expected to generate 0.49 times more return on investment than Guild Esports. However, GoldMining is 2.03 times less risky than Guild Esports. It trades about -0.02 of its potential returns per unit of risk. Guild Esports Plc is currently generating about -0.29 per unit of risk. If you would invest 126.00 in GoldMining on September 5, 2024 and sell it today you would lose (5.00) from holding GoldMining or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.69% |
| Values | Daily Returns |
GoldMining vs. Guild Esports Plc
Performance |
| Timeline |
| GoldMining |
| Guild Esports Plc |
GoldMining and Guild Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Guild Esports
The main advantage of trading using opposite GoldMining and Guild Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining position performs unexpectedly, Guild Esports 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 Guild Esports will offset losses from the drop in Guild Esports' long position.| GoldMining vs. Samsung Electronics Co | GoldMining vs. Samsung Electronics Co | GoldMining vs. Hyundai Motor | GoldMining vs. Toyota Motor Corp |
| Guild Esports vs. Ashtead Technology Holdings | Guild Esports vs. GoldMining | Guild Esports vs. Cornish Metals | Guild Esports vs. Ecclesiastical Insurance Office |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |