Correlation Between Antioquia Gold and Snowline Gold
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Snowline 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 Snowline 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 Snowline Gold Corp, you can compare the effects of market volatilities on Antioquia Gold and Snowline 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 Snowline Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Snowline Gold.
Diversification Opportunities for Antioquia Gold and Snowline Gold
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Antioquia and Snowline is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Snowline Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snowline Gold Corp 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 Snowline Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snowline Gold Corp has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Snowline Gold go up and down completely randomly.
Pair Corralation between Antioquia Gold and Snowline Gold
Assuming the 90 days horizon Antioquia Gold is expected to generate 18.12 times more return on investment than Snowline Gold. However, Antioquia Gold is 18.12 times more volatile than Snowline Gold Corp. It trades about 0.16 of its potential returns per unit of risk. Snowline Gold Corp is currently generating about -0.06 per unit of risk. If you would invest 2.00 in Antioquia Gold on September 19, 2024 and sell it today you would lose (0.50) from holding Antioquia Gold or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Antioquia Gold vs. Snowline Gold Corp
Performance |
| Timeline |
| Antioquia Gold |
| Snowline Gold Corp |
Antioquia Gold and Snowline Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Snowline Gold
The main advantage of trading using opposite Antioquia Gold and Snowline Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Snowline 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 Snowline Gold will offset losses from the drop in Snowline Gold's long position.| Antioquia Gold vs. Advantage Solutions | Antioquia Gold vs. Atlas Corp | Antioquia Gold vs. PureCycle Technologies | Antioquia Gold vs. WM Technology |
| Snowline Gold vs. Galiano Gold | Snowline Gold vs. US Gold Corp | Snowline Gold vs. HUMANA INC | Snowline Gold vs. Barloworld Ltd ADR |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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