Correlation Between American Copper and Provenance Gold
Can any of the company-specific risk be diversified away by investing in both American Copper and Provenance 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 American Copper and Provenance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Copper Development and Provenance Gold Corp, you can compare the effects of market volatilities on American Copper and Provenance 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 American Copper with a short position of Provenance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Copper and Provenance Gold.
Diversification Opportunities for American Copper and Provenance Gold
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Provenance is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding American Copper Development and Provenance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Provenance Gold Corp and American Copper 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 American Copper Development are associated (or correlated) with Provenance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Provenance Gold Corp has no effect on the direction of American Copper i.e., American Copper and Provenance Gold go up and down completely randomly.
Pair Corralation between American Copper and Provenance Gold
Assuming the 90 days horizon American Copper is expected to generate 1.04 times less return on investment than Provenance Gold. In addition to that, American Copper is 2.38 times more volatile than Provenance Gold Corp. It trades about 0.06 of its total potential returns per unit of risk. Provenance Gold Corp is currently generating about 0.14 per unit of volatility. If you would invest 5.50 in Provenance Gold Corp on September 3, 2024 and sell it today you would earn a total of 14.50 from holding Provenance Gold Corp or generate 263.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Copper Development vs. Provenance Gold Corp
Performance |
| Timeline |
| American Copper Deve |
| Provenance Gold Corp |
American Copper and Provenance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Copper and Provenance Gold
The main advantage of trading using opposite American Copper and Provenance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Copper position performs unexpectedly, Provenance 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 Provenance Gold will offset losses from the drop in Provenance Gold's long position.| American Copper vs. Artisan Partners Asset | American Copper vs. JBG SMITH Properties | American Copper vs. PennantPark Floating Rate | American Copper vs. Sabra Healthcare REIT |
| Provenance Gold vs. Chesapeake Gold Corp | Provenance Gold vs. Clifton Mining Co | Provenance Gold vs. Usha Resources | Provenance Gold vs. American Copper Development |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |