Correlation Between Antilles Gold and Cartier Resources
Can any of the company-specific risk be diversified away by investing in both Antilles Gold and Cartier 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 Antilles Gold and Cartier Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antilles Gold Limited and Cartier Resources, you can compare the effects of market volatilities on Antilles Gold and Cartier 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 Antilles Gold with a short position of Cartier Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antilles Gold and Cartier Resources.
Diversification Opportunities for Antilles Gold and Cartier Resources
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Antilles and Cartier is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Antilles Gold Limited and Cartier Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartier Resources and Antilles 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 Antilles Gold Limited are associated (or correlated) with Cartier Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartier Resources has no effect on the direction of Antilles Gold i.e., Antilles Gold and Cartier Resources go up and down completely randomly.
Pair Corralation between Antilles Gold and Cartier Resources
Assuming the 90 days horizon Antilles Gold Limited is expected to generate 5.14 times more return on investment than Cartier Resources. However, Antilles Gold is 5.14 times more volatile than Cartier Resources. It trades about 0.09 of its potential returns per unit of risk. Cartier Resources is currently generating about 0.06 per unit of risk. If you would invest 2.14 in Antilles Gold Limited on September 1, 2024 and sell it today you would lose (1.54) from holding Antilles Gold Limited or give up 71.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Antilles Gold Limited vs. Cartier Resources
Performance |
| Timeline |
| Antilles Gold Limited |
| Cartier Resources |
Antilles Gold and Cartier Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antilles Gold and Cartier Resources
The main advantage of trading using opposite Antilles Gold and Cartier Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antilles Gold position performs unexpectedly, Cartier 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 Cartier Resources will offset losses from the drop in Cartier Resources' long position.| Antilles Gold vs. Aurion Resources | Antilles Gold vs. Rio2 Limited | Antilles Gold vs. Palamina Corp | Antilles Gold vs. BTU Metals Corp |
| Cartier Resources vs. South32 Limited | Cartier Resources vs. NioCorp Developments Ltd | Cartier Resources vs. HUMANA INC | Cartier Resources vs. SCOR PK |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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