Correlation Between Alamos Gold and Metalero Mining
Can any of the company-specific risk be diversified away by investing in both Alamos Gold and Metalero 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 Alamos Gold and Metalero Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alamos Gold and Metalero Mining Corp, you can compare the effects of market volatilities on Alamos Gold and Metalero 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 Alamos Gold with a short position of Metalero Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alamos Gold and Metalero Mining.
Diversification Opportunities for Alamos Gold and Metalero Mining
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alamos and Metalero is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Alamos Gold and Metalero Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalero Mining Corp 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 Metalero Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalero Mining Corp has no effect on the direction of Alamos Gold i.e., Alamos Gold and Metalero Mining go up and down completely randomly.
Pair Corralation between Alamos Gold and Metalero Mining
Assuming the 90 days trading horizon Alamos Gold is expected to generate 4.79 times less return on investment than Metalero Mining. But when comparing it to its historical volatility, Alamos Gold is 6.2 times less risky than Metalero Mining. It trades about 0.09 of its potential returns per unit of risk. Metalero Mining Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7.50 in Metalero Mining Corp on September 14, 2024 and sell it today you would earn a total of 6.50 from holding Metalero Mining Corp or generate 86.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Alamos Gold vs. Metalero Mining Corp
Performance |
| Timeline |
| Alamos Gold |
| Metalero Mining Corp |
Alamos Gold and Metalero Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alamos Gold and Metalero Mining
The main advantage of trading using opposite Alamos Gold and Metalero Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alamos Gold position performs unexpectedly, Metalero 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 Metalero Mining will offset losses from the drop in Metalero Mining's long position.| Alamos Gold vs. Westshore Terminals Investment | Alamos Gold vs. Bird Construction | Alamos Gold vs. East Side Games | Alamos Gold vs. Upstart Investments |
| Metalero Mining vs. Barrick Gold Corp | Metalero Mining vs. Kinross Gold Corp | Metalero Mining vs. Alamos Gold | Metalero Mining vs. Endeavour Mining Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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