Correlation Between Big Ridge and Advance Gold
Can any of the company-specific risk be diversified away by investing in both Big Ridge and Advance 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 Big Ridge and Advance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Ridge Gold and Advance Gold Corp, you can compare the effects of market volatilities on Big Ridge and Advance 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 Big Ridge with a short position of Advance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Ridge and Advance Gold.
Diversification Opportunities for Big Ridge and Advance Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Big and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Big Ridge Gold and Advance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Gold Corp and Big Ridge 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 Big Ridge Gold are associated (or correlated) with Advance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Gold Corp has no effect on the direction of Big Ridge i.e., Big Ridge and Advance Gold go up and down completely randomly.
Pair Corralation between Big Ridge and Advance Gold
If you would invest 4.00 in Big Ridge Gold on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Big Ridge Gold or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Big Ridge Gold vs. Advance Gold Corp
Performance |
| Timeline |
| Big Ridge Gold |
| Advance Gold Corp |
Big Ridge and Advance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Ridge and Advance Gold
The main advantage of trading using opposite Big Ridge and Advance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Ridge position performs unexpectedly, Advance 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 Advance Gold will offset losses from the drop in Advance Gold's long position.| Big Ridge vs. Minnova Corp | Big Ridge vs. Argo Gold | Big Ridge vs. Advance Gold Corp | Big Ridge vs. Blue Star Gold |
| Advance Gold vs. Harmony Gold Mining | Advance Gold vs. SPACE | Advance Gold vs. T Rowe Price | Advance Gold vs. Ampleforth |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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