Correlation Between GoldMining and Gaming Realms
Can any of the company-specific risk be diversified away by investing in both GoldMining and Gaming Realms 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 Gaming Realms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Gaming Realms plc, you can compare the effects of market volatilities on GoldMining and Gaming Realms 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 Gaming Realms. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Gaming Realms.
Diversification Opportunities for GoldMining and Gaming Realms
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GoldMining and Gaming is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and Gaming Realms plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Realms 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 Gaming Realms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Realms plc has no effect on the direction of GoldMining i.e., GoldMining and Gaming Realms go up and down completely randomly.
Pair Corralation between GoldMining and Gaming Realms
Assuming the 90 days trading horizon GoldMining is expected to generate 1.46 times more return on investment than Gaming Realms. However, GoldMining is 1.46 times more volatile than Gaming Realms plc. It trades about 0.03 of its potential returns per unit of risk. Gaming Realms plc is currently generating about 0.03 per unit of risk. If you would invest 116.00 in GoldMining on September 14, 2024 and sell it today you would earn a total of 6.00 from holding GoldMining or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 46.49% |
| Values | Daily Returns |
GoldMining vs. Gaming Realms plc
Performance |
| Timeline |
| GoldMining |
| Gaming Realms plc |
GoldMining and Gaming Realms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Gaming Realms
The main advantage of trading using opposite GoldMining and Gaming Realms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining position performs unexpectedly, Gaming Realms 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 Gaming Realms will offset losses from the drop in Gaming Realms' long position.| GoldMining vs. Jacquet Metal Service | GoldMining vs. Wheaton Precious Metals | GoldMining vs. Adriatic Metals | GoldMining vs. Telecom Italia SpA |
| Gaming Realms vs. Anglesey Mining | Gaming Realms vs. GoldMining | Gaming Realms vs. METALL ZUG AG | Gaming Realms vs. Gamma Communications 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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 | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |