Correlation Between Antioquia Gold and Allegiant Gold
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Allegiant 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 Antioquia Gold and Allegiant Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Allegiant Gold, you can compare the effects of market volatilities on Antioquia Gold and Allegiant 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 Antioquia Gold with a short position of Allegiant Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Allegiant Gold.
Diversification Opportunities for Antioquia Gold and Allegiant Gold
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Antioquia and Allegiant is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Allegiant Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Gold 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 Allegiant Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Gold has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Allegiant Gold go up and down completely randomly.
Pair Corralation between Antioquia Gold and Allegiant Gold
Assuming the 90 days horizon Antioquia Gold is expected to generate 3.21 times more return on investment than Allegiant Gold. However, Antioquia Gold is 3.21 times more volatile than Allegiant Gold. It trades about 0.21 of its potential returns per unit of risk. Allegiant Gold is currently generating about -0.19 per unit of risk. If you would invest 1.00 in Antioquia Gold on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Antioquia Gold vs. Allegiant Gold
Performance |
| Timeline |
| Antioquia Gold |
| Allegiant Gold |
Antioquia Gold and Allegiant Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Allegiant Gold
The main advantage of trading using opposite Antioquia Gold and Allegiant Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Allegiant 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 Allegiant Gold will offset losses from the drop in Allegiant Gold's 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 |
| Allegiant Gold vs. Silver Hammer Mining | Allegiant Gold vs. Reyna Silver Corp | Allegiant Gold vs. Guanajuato Silver | Allegiant Gold vs. Silver One Resources |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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