Correlation Between Alamos Gold and East Side
Can any of the company-specific risk be diversified away by investing in both Alamos Gold and East Side 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 Alamos Gold and East Side into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alamos Gold and East Side Games, you can compare the effects of market volatilities on Alamos Gold and East Side 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 Alamos Gold with a short position of East Side. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alamos Gold and East Side.
Diversification Opportunities for Alamos Gold and East Side
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alamos and East is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Alamos Gold and East Side Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Side Games and Alamos 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 Alamos Gold are associated (or correlated) with East Side. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Side Games has no effect on the direction of Alamos Gold i.e., Alamos Gold and East Side go up and down completely randomly.
Pair Corralation between Alamos Gold and East Side
Assuming the 90 days trading horizon Alamos Gold is expected to generate 0.4 times more return on investment than East Side. However, Alamos Gold is 2.5 times less risky than East Side. It trades about 0.25 of its potential returns per unit of risk. East Side Games is currently generating about -0.1 per unit of risk. If you would invest 2,773 in Alamos Gold on November 3, 2024 and sell it today you would earn a total of 266.00 from holding Alamos Gold or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alamos Gold vs. East Side Games
Performance |
| Timeline |
| Alamos Gold |
| East Side Games |
Alamos Gold and East Side Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alamos Gold and East Side
The main advantage of trading using opposite Alamos Gold and East Side positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alamos Gold position performs unexpectedly, East Side 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 East Side will offset losses from the drop in East Side's long position.| Alamos Gold vs. TGS Esports | Alamos Gold vs. Calibre Mining Corp | Alamos Gold vs. NeXGold Mining Corp | Alamos Gold vs. Precious Metals And |
| East Side vs. Sangoma Technologies Corp | East Side vs. Vitalhub Corp | East Side vs. Propel Holdings | East Side vs. D2L 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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