Correlation Between Angus Gold and Lundin Gold
Can any of the company-specific risk be diversified away by investing in both Angus Gold and Lundin 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 Angus Gold and Lundin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angus Gold and Lundin Gold, you can compare the effects of market volatilities on Angus Gold and Lundin 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 Angus Gold with a short position of Lundin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angus Gold and Lundin Gold.
Diversification Opportunities for Angus Gold and Lundin Gold
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angus and Lundin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Angus Gold and Lundin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Gold 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 Lundin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Gold has no effect on the direction of Angus Gold i.e., Angus Gold and Lundin Gold go up and down completely randomly.
Pair Corralation between Angus Gold and Lundin Gold
Assuming the 90 days horizon Angus Gold is expected to under-perform the Lundin Gold. In addition to that, Angus Gold is 3.33 times more volatile than Lundin Gold. It trades about -0.08 of its total potential returns per unit of risk. Lundin Gold is currently generating about 0.09 per unit of volatility. If you would invest 2,150 in Lundin Gold on August 30, 2024 and sell it today you would earn a total of 180.00 from holding Lundin Gold or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angus Gold vs. Lundin Gold
Performance |
| Timeline |
| Angus Gold |
| Lundin Gold |
Angus Gold and Lundin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angus Gold and Lundin Gold
The main advantage of trading using opposite Angus Gold and Lundin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angus Gold position performs unexpectedly, Lundin 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 Lundin Gold will offset losses from the drop in Lundin Gold's long position.| Angus Gold vs. Minnova Corp | Angus Gold vs. Argo Gold | Angus Gold vs. Advance Gold Corp | Angus Gold vs. Blue Star Gold |
| Lundin Gold vs. Vertiv Holdings Co | Lundin Gold vs. Nasdaq Inc | Lundin Gold vs. McDonalds | Lundin Gold vs. Walmart |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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