Correlation Between Athena Gold and Gold79 Mines
Can any of the company-specific risk be diversified away by investing in both Athena Gold and Gold79 Mines 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 Athena Gold and Gold79 Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athena Gold Corp and Gold79 Mines, you can compare the effects of market volatilities on Athena Gold and Gold79 Mines 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 Athena Gold with a short position of Gold79 Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Gold and Gold79 Mines.
Diversification Opportunities for Athena Gold and Gold79 Mines
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Athena and Gold79 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Athena Gold Corp and Gold79 Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold79 Mines and Athena 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 Athena Gold Corp are associated (or correlated) with Gold79 Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold79 Mines has no effect on the direction of Athena Gold i.e., Athena Gold and Gold79 Mines go up and down completely randomly.
Pair Corralation between Athena Gold and Gold79 Mines
Given the investment horizon of 90 days Athena Gold Corp is expected to generate 2.16 times more return on investment than Gold79 Mines. However, Athena Gold is 2.16 times more volatile than Gold79 Mines. It trades about 0.05 of its potential returns per unit of risk. Gold79 Mines is currently generating about 0.05 per unit of risk. If you would invest 6.00 in Athena Gold Corp on September 13, 2024 and sell it today you would lose (2.00) from holding Athena Gold Corp or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Athena Gold Corp vs. Gold79 Mines
Performance |
| Timeline |
| Athena Gold Corp |
| Gold79 Mines |
Athena Gold and Gold79 Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athena Gold and Gold79 Mines
The main advantage of trading using opposite Athena Gold and Gold79 Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Gold position performs unexpectedly, Gold79 Mines 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 Gold79 Mines will offset losses from the drop in Gold79 Mines' long position.| Athena Gold vs. Arras Minerals Corp | Athena Gold vs. American Sierra Gold | Athena Gold vs. Gold79 Mines | Athena Gold vs. Cartier Iron Corp |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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