Correlation Between Antioquia Gold and Matador Mining
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Matador Mining 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 Matador Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Matador Mining Limited, you can compare the effects of market volatilities on Antioquia Gold and Matador Mining 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 Matador Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Matador Mining.
Diversification Opportunities for Antioquia Gold and Matador Mining
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Antioquia and Matador is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Matador Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matador Mining 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 Matador Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matador Mining has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Matador Mining go up and down completely randomly.
Pair Corralation between Antioquia Gold and Matador Mining
Assuming the 90 days horizon Antioquia Gold is expected to generate 5.38 times more return on investment than Matador Mining. However, Antioquia Gold is 5.38 times more volatile than Matador Mining Limited. It trades about 0.12 of its potential returns per unit of risk. Matador Mining Limited is currently generating about 0.12 per unit of risk. If you would invest 0.50 in Antioquia Gold on August 29, 2024 and sell it today you would earn a total of 1.50 from holding Antioquia Gold or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.46% |
| Values | Daily Returns |
Antioquia Gold vs. Matador Mining Limited
Performance |
| Timeline |
| Antioquia Gold |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antioquia Gold and Matador Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Matador Mining
The main advantage of trading using opposite Antioquia Gold and Matador Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Matador Mining 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 Matador Mining will offset losses from the drop in Matador Mining'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 |
| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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