Correlation Between Antioquia Gold and Minaurum Gold
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Minaurum 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 Minaurum 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 Minaurum Gold, you can compare the effects of market volatilities on Antioquia Gold and Minaurum 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 Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Minaurum Gold.
Diversification Opportunities for Antioquia Gold and Minaurum Gold
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Antioquia and Minaurum is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum 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 Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Minaurum Gold go up and down completely randomly.
Pair Corralation between Antioquia Gold and Minaurum Gold
Assuming the 90 days horizon Antioquia Gold is expected to generate 13.6 times more return on investment than Minaurum Gold. However, Antioquia Gold is 13.6 times more volatile than Minaurum Gold. It trades about 0.12 of its potential returns per unit of risk. Minaurum Gold is currently generating about 0.03 per unit of risk. If you would invest 0.35 in Antioquia Gold on August 25, 2024 and sell it today you would earn a total of 1.65 from holding Antioquia Gold or generate 471.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antioquia Gold vs. Minaurum Gold
Performance |
| Timeline |
| Antioquia Gold |
| Minaurum Gold |
Antioquia Gold and Minaurum Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Minaurum Gold
The main advantage of trading using opposite Antioquia Gold and Minaurum Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Minaurum 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 Minaurum Gold will offset losses from the drop in Minaurum Gold's long position.| Antioquia Gold vs. Ascendant Resources | Antioquia Gold vs. Cantex Mine Development | Antioquia Gold vs. Amarc Resources | Antioquia Gold vs. Sterling Metals Corp |
| Minaurum Gold vs. Rio2 Limited | Minaurum Gold vs. Aurion Resources | Minaurum Gold vs. Norsemont Mining | Minaurum Gold vs. Vior Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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