Correlation Between Big Ridge and Argo Gold
Can any of the company-specific risk be diversified away by investing in both Big Ridge and Argo 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 Argo 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 Argo Gold, you can compare the effects of market volatilities on Big Ridge and Argo 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 Argo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Ridge and Argo Gold.
Diversification Opportunities for Big Ridge and Argo Gold
Good diversification
The 3 months correlation between Big and Argo is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Big Ridge Gold and Argo Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Gold 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 Argo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Gold has no effect on the direction of Big Ridge i.e., Big Ridge and Argo Gold go up and down completely randomly.
Pair Corralation between Big Ridge and Argo Gold
Assuming the 90 days horizon Big Ridge Gold is expected to under-perform the Argo Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Big Ridge Gold is 1.45 times less risky than Argo Gold. The otc stock trades about -0.1 of its potential returns per unit of risk. The Argo Gold is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5.94 in Argo Gold on September 3, 2024 and sell it today you would lose (0.44) from holding Argo Gold or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Big Ridge Gold vs. Argo Gold
Performance |
| Timeline |
| Big Ridge Gold |
| Argo Gold |
Big Ridge and Argo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Ridge and Argo Gold
The main advantage of trading using opposite Big Ridge and Argo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Ridge position performs unexpectedly, Argo 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 Argo Gold will offset losses from the drop in Argo 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 |
| Argo Gold vs. Blue Star Gold | Argo Gold vs. Angkor Resources Corp | Argo Gold vs. Advance Gold Corp | Argo Gold vs. Advance United Holdings |
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.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |