Correlation Between Almaden Minerals and Golden Minerals
Can any of the company-specific risk be diversified away by investing in both Almaden Minerals and Golden Minerals 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 Almaden Minerals and Golden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almaden Minerals and Golden Minerals, you can compare the effects of market volatilities on Almaden Minerals and Golden Minerals 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 Almaden Minerals with a short position of Golden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almaden Minerals and Golden Minerals.
Diversification Opportunities for Almaden Minerals and Golden Minerals
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Almaden and Golden is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and Golden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Minerals and Almaden Minerals 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 Almaden Minerals are associated (or correlated) with Golden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Minerals has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and Golden Minerals go up and down completely randomly.
Pair Corralation between Almaden Minerals and Golden Minerals
If you would invest 15.00 in Almaden Minerals on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Almaden Minerals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Almaden Minerals vs. Golden Minerals
Performance |
| Timeline |
| Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Golden Minerals |
Almaden Minerals and Golden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Almaden Minerals and Golden Minerals
The main advantage of trading using opposite Almaden Minerals and Golden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almaden Minerals position performs unexpectedly, Golden Minerals 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 Golden Minerals will offset losses from the drop in Golden Minerals' long position.| Almaden Minerals vs. Antioquia Gold | Almaden Minerals vs. Asante Gold | Almaden Minerals vs. Bluestone Resources | Almaden Minerals vs. Big Ridge Gold |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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