Correlation Between GoldMining and Intuitive Investments
Can any of the company-specific risk be diversified away by investing in both GoldMining and Intuitive Investments 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 Intuitive Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Intuitive Investments Group, you can compare the effects of market volatilities on GoldMining and Intuitive Investments 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 Intuitive Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Intuitive Investments.
Diversification Opportunities for GoldMining and Intuitive Investments
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between GoldMining and Intuitive is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and Intuitive Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Investments 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 Intuitive Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Investments has no effect on the direction of GoldMining i.e., GoldMining and Intuitive Investments go up and down completely randomly.
Pair Corralation between GoldMining and Intuitive Investments
Assuming the 90 days trading horizon GoldMining is expected to generate 2.57 times more return on investment than Intuitive Investments. However, GoldMining is 2.57 times more volatile than Intuitive Investments Group. It trades about 0.02 of its potential returns per unit of risk. Intuitive Investments Group is currently generating about -0.17 per unit of risk. If you would invest 119.00 in GoldMining on September 2, 2024 and sell it today you would earn a total of 1.00 from holding GoldMining or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
GoldMining vs. Intuitive Investments Group
Performance |
| Timeline |
| GoldMining |
| Intuitive Investments |
GoldMining and Intuitive Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Intuitive Investments
The main advantage of trading using opposite GoldMining and Intuitive Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining position performs unexpectedly, Intuitive Investments 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 Intuitive Investments will offset losses from the drop in Intuitive Investments' long position.| GoldMining vs. European Metals Holdings | GoldMining vs. Cornish Metals | GoldMining vs. Virgin Wines UK | GoldMining vs. Gaztransport et Technigaz |
| Intuitive Investments vs. Toyota Motor Corp | Intuitive Investments vs. SoftBank Group Corp | Intuitive Investments vs. OTP Bank Nyrt | Intuitive Investments vs. Las Vegas Sands |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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