Correlation Between Altagas Cum and Eminent Gold
Can any of the company-specific risk be diversified away by investing in both Altagas Cum and Eminent 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 Altagas Cum and Eminent Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altagas Cum Red and Eminent Gold Corp, you can compare the effects of market volatilities on Altagas Cum and Eminent 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 Altagas Cum with a short position of Eminent Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altagas Cum and Eminent Gold.
Diversification Opportunities for Altagas Cum and Eminent Gold
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altagas and Eminent is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red and Eminent Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminent Gold Corp and Altagas Cum 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 Altagas Cum Red are associated (or correlated) with Eminent Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminent Gold Corp has no effect on the direction of Altagas Cum i.e., Altagas Cum and Eminent Gold go up and down completely randomly.
Pair Corralation between Altagas Cum and Eminent Gold
Assuming the 90 days trading horizon Altagas Cum Red is expected to generate 0.22 times more return on investment than Eminent Gold. However, Altagas Cum Red is 4.64 times less risky than Eminent Gold. It trades about 0.3 of its potential returns per unit of risk. Eminent Gold Corp is currently generating about -0.23 per unit of risk. If you would invest 1,850 in Altagas Cum Red on August 29, 2024 and sell it today you would earn a total of 97.00 from holding Altagas Cum Red or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altagas Cum Red vs. Eminent Gold Corp
Performance |
| Timeline |
| Altagas Cum Red |
| Eminent Gold Corp |
Altagas Cum and Eminent Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altagas Cum and Eminent Gold
The main advantage of trading using opposite Altagas Cum and Eminent Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum position performs unexpectedly, Eminent 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 Eminent Gold will offset losses from the drop in Eminent Gold's long position.| Altagas Cum vs. Evertz Technologies Limited | Altagas Cum vs. Birchtech Corp | Altagas Cum vs. Ocumetics Technology Corp | Altagas Cum vs. North American Construction |
| Eminent Gold vs. Tier One Silver | Eminent Gold vs. Angus Ventures | Eminent Gold vs. Empress Royalty Corp | Eminent Gold vs. District Metals 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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