Correlation Between Almaden Minerals and Maple Gold
Can any of the company-specific risk be diversified away by investing in both Almaden Minerals and Maple Gold 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 Maple Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almaden Minerals and Maple Gold Mines, you can compare the effects of market volatilities on Almaden Minerals and Maple Gold 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 Maple Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almaden Minerals and Maple Gold.
Diversification Opportunities for Almaden Minerals and Maple Gold
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Almaden and Maple is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and Maple Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Gold Mines 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 Maple Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Gold Mines has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and Maple Gold go up and down completely randomly.
Pair Corralation between Almaden Minerals and Maple Gold
Considering the 90-day investment horizon Almaden Minerals is expected to under-perform the Maple Gold. But the stock apears to be less risky and, when comparing its historical volatility, Almaden Minerals is 1.44 times less risky than Maple Gold. The stock trades about -0.07 of its potential returns per unit of risk. The Maple Gold Mines is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Maple Gold Mines on November 2, 2024 and sell it today you would lose (8.50) from holding Maple Gold Mines or give up 65.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.67% |
| Values | Daily Returns |
Almaden Minerals vs. Maple Gold Mines
Performance |
| Timeline |
| Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Maple Gold Mines |
Almaden Minerals and Maple Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Almaden Minerals and Maple Gold
The main advantage of trading using opposite Almaden Minerals and Maple Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almaden Minerals position performs unexpectedly, Maple Gold 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 Maple Gold will offset losses from the drop in Maple Gold's long position.| Almaden Minerals vs. Antioquia Gold | Almaden Minerals vs. Asante Gold | Almaden Minerals vs. Bluestone Resources | Almaden Minerals vs. Big Ridge Gold |
| Maple Gold vs. Steppe Gold | Maple Gold vs. Caledonia Mining | Maple Gold vs. Fortuna Silver Mines | Maple Gold vs. Sandstorm Gold Ltd |
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.
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