Correlation Between Angus Gold and Bonterra Resources
Can any of the company-specific risk be diversified away by investing in both Angus Gold and Bonterra Resources 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 Angus Gold and Bonterra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angus Gold and Bonterra Resources, you can compare the effects of market volatilities on Angus Gold and Bonterra Resources 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 Angus Gold with a short position of Bonterra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angus Gold and Bonterra Resources.
Diversification Opportunities for Angus Gold and Bonterra Resources
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angus and Bonterra is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Angus Gold and Bonterra Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonterra Resources and Angus 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 Angus Gold are associated (or correlated) with Bonterra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonterra Resources has no effect on the direction of Angus Gold i.e., Angus Gold and Bonterra Resources go up and down completely randomly.
Pair Corralation between Angus Gold and Bonterra Resources
Assuming the 90 days horizon Angus Gold is expected to under-perform the Bonterra Resources. In addition to that, Angus Gold is 1.13 times more volatile than Bonterra Resources. It trades about -0.02 of its total potential returns per unit of risk. Bonterra Resources is currently generating about 0.02 per unit of volatility. If you would invest 19.00 in Bonterra Resources on September 3, 2024 and sell it today you would lose (2.00) from holding Bonterra Resources or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angus Gold vs. Bonterra Resources
Performance |
| Timeline |
| Angus Gold |
| Bonterra Resources |
Angus Gold and Bonterra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angus Gold and Bonterra Resources
The main advantage of trading using opposite Angus Gold and Bonterra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angus Gold position performs unexpectedly, Bonterra Resources 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 Bonterra Resources will offset losses from the drop in Bonterra Resources' long position.| Angus Gold vs. Minnova Corp | Angus Gold vs. Argo Gold | Angus Gold vs. Advance Gold Corp | Angus Gold vs. Blue Star Gold |
| Bonterra Resources vs. Advantage Solutions | Bonterra Resources vs. Atlas Corp | Bonterra Resources vs. PureCycle Technologies | Bonterra Resources vs. WM Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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