Correlation Between Antioquia Gold and Blue Star
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Blue Star 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 Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Blue Star Gold, you can compare the effects of market volatilities on Antioquia Gold and Blue Star 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 Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Blue Star.
Diversification Opportunities for Antioquia Gold and Blue Star
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Antioquia and Blue is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Blue Star Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star 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 Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Gold has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Blue Star go up and down completely randomly.
Pair Corralation between Antioquia Gold and Blue Star
Assuming the 90 days horizon Antioquia Gold is expected to generate 39.78 times more return on investment than Blue Star. However, Antioquia Gold is 39.78 times more volatile than Blue Star Gold. It trades about 0.21 of its potential returns per unit of risk. Blue Star Gold is currently generating about -0.21 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antioquia Gold vs. Blue Star Gold
Performance |
| Timeline |
| Antioquia Gold |
| Blue Star Gold |
Antioquia Gold and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Blue Star
The main advantage of trading using opposite Antioquia Gold and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Blue Star 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 Blue Star will offset losses from the drop in Blue Star'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 |
| Blue Star vs. Argo Gold | Blue Star vs. Minnova Corp | Blue Star vs. Angkor Resources Corp | Blue Star vs. Advance United Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |