Correlation Between Advance Gold and Shanta Gold
Can any of the company-specific risk be diversified away by investing in both Advance Gold and Shanta 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 Shanta 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 Shanta Gold Limited, you can compare the effects of market volatilities on Advance Gold and Shanta 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 Shanta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance Gold and Shanta Gold.
Diversification Opportunities for Advance Gold and Shanta Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advance and Shanta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advance Gold Corp and Shanta Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanta 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 Shanta Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanta Gold Limited has no effect on the direction of Advance Gold i.e., Advance Gold and Shanta Gold go up and down completely randomly.
Pair Corralation between Advance Gold and Shanta Gold
If you would invest 15.00 in Shanta Gold Limited on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Shanta Gold Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Advance Gold Corp vs. Shanta Gold Limited
Performance |
| Timeline |
| Advance Gold Corp |
| Shanta Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advance Gold and Shanta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advance Gold and Shanta Gold
The main advantage of trading using opposite Advance Gold and Shanta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Gold position performs unexpectedly, Shanta 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 Shanta Gold will offset losses from the drop in Shanta Gold's long position.| Advance Gold vs. Revival Gold | Advance Gold vs. Galiano Gold | Advance Gold vs. US Gold Corp | Advance Gold vs. HUMANA INC |
| Shanta Gold vs. Argo Gold | Shanta Gold vs. Minnova Corp | Shanta Gold vs. Blue Star Gold | Shanta Gold vs. Advance 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 Stocks Directory module to find actively traded stocks across global markets.
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