Correlation Between American International and New World
Can any of the company-specific risk be diversified away by investing in both American International and New World 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 American International and New World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American International Ventures and New World Gold, you can compare the effects of market volatilities on American International and New World 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 American International with a short position of New World. Check out your portfolio center. Please also check ongoing floating volatility patterns of American International and New World.
Diversification Opportunities for American International and New World
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American International Venture and New World Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New World Gold and American International 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 American International Ventures are associated (or correlated) with New World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New World Gold has no effect on the direction of American International i.e., American International and New World go up and down completely randomly.
Pair Corralation between American International and New World
If you would invest 0.01 in New World Gold on August 29, 2024 and sell it today you would earn a total of 0.00 from holding New World Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American International Venture vs. New World Gold
Performance |
| Timeline |
| American International |
| New World Gold |
American International and New World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American International and New World
The main advantage of trading using opposite American International and New World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American International position performs unexpectedly, New World 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 New World will offset losses from the drop in New World's long position.| American International vs. Labrador Gold Corp | American International vs. Aurion Resources | American International vs. Puma Exploration | American International vs. Golden Star Resource |
| New World vs. Aurion Resources | New World vs. Liberty Gold Corp | New World vs. Orezone Gold Corp | New World vs. Fortuna Silver Mines |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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