Correlation Between Advance Gold and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Advance Gold and Antilles 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 Advance Gold and Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advance Gold Corp and Antilles Gold Limited, you can compare the effects of market volatilities on Advance Gold and Antilles 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 Advance Gold with a short position of Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance Gold and Antilles Gold.
Diversification Opportunities for Advance Gold and Antilles Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advance and Antilles is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advance Gold Corp and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited and Advance Gold 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 Advance Gold Corp are associated (or correlated) with Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Advance Gold i.e., Advance Gold and Antilles Gold go up and down completely randomly.
Pair Corralation between Advance Gold and Antilles Gold
If you would invest 1.00 in Antilles Gold Limited on August 25, 2024 and sell it today you would lose (0.40) from holding Antilles Gold Limited or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advance Gold Corp vs. Antilles Gold Limited
Performance |
| Timeline |
| Advance Gold Corp |
| Antilles Gold Limited |
Advance Gold and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advance Gold and Antilles Gold
The main advantage of trading using opposite Advance Gold and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Gold position performs unexpectedly, Antilles 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| Advance Gold vs. Aurion Resources | Advance Gold vs. Liberty Gold Corp | Advance Gold vs. Rio2 Limited | Advance Gold vs. Orezone Gold Corp |
| Antilles Gold vs. Aurion Resources | Antilles Gold vs. Liberty Gold Corp | Antilles Gold vs. Rio2 Limited | Antilles Gold vs. Orezone Gold Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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