Correlation Between Antioquia Gold and Almaden Minerals
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Almaden 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 Antioquia Gold and Almaden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Almaden Minerals, you can compare the effects of market volatilities on Antioquia Gold and Almaden 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 Antioquia Gold with a short position of Almaden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Almaden Minerals.
Diversification Opportunities for Antioquia Gold and Almaden Minerals
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Antioquia and Almaden is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Almaden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almaden Minerals and Antioquia 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 Antioquia Gold are associated (or correlated) with Almaden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almaden Minerals has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Almaden Minerals go up and down completely randomly.
Pair Corralation between Antioquia Gold and Almaden Minerals
Assuming the 90 days horizon Antioquia Gold is expected to generate 19.62 times more return on investment than Almaden Minerals. However, Antioquia Gold is 19.62 times more volatile than Almaden Minerals. It trades about 0.09 of its potential returns per unit of risk. Almaden Minerals is currently generating about -0.07 per unit of risk. If you would invest 1.00 in Antioquia Gold on October 21, 2024 and sell it today you would lose (1.00) from holding Antioquia Gold or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 24.5% |
| Values | Daily Returns |
Antioquia Gold vs. Almaden Minerals
Performance |
| Timeline |
| Antioquia Gold |
| Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antioquia Gold and Almaden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Almaden Minerals
The main advantage of trading using opposite Antioquia Gold and Almaden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Almaden 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 Almaden Minerals will offset losses from the drop in Almaden Minerals' long position.| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold Corp |
| Almaden Minerals vs. Antioquia Gold | Almaden Minerals vs. Asante Gold | Almaden Minerals vs. Bluestone Resources | Almaden Minerals vs. Big Ridge Gold |
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.
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