Correlation Between Antilles Gold and Red Pine
Can any of the company-specific risk be diversified away by investing in both Antilles Gold and Red Pine 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 Red Pine 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 Red Pine Exploration, you can compare the effects of market volatilities on Antilles Gold and Red Pine 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 Red Pine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antilles Gold and Red Pine.
Diversification Opportunities for Antilles Gold and Red Pine
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Antilles and Red is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Antilles Gold Limited and Red Pine Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Pine Exploration 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 Red Pine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Pine Exploration has no effect on the direction of Antilles Gold i.e., Antilles Gold and Red Pine go up and down completely randomly.
Pair Corralation between Antilles Gold and Red Pine
Assuming the 90 days horizon Antilles Gold Limited is expected to generate 3.91 times more return on investment than Red Pine. However, Antilles Gold is 3.91 times more volatile than Red Pine Exploration. It trades about 0.08 of its potential returns per unit of risk. Red Pine Exploration is currently generating about 0.0 per unit of risk. If you would invest 1.00 in Antilles Gold Limited on August 25, 2024 and sell it today you would lose (0.40) from holding Antilles Gold Limited or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antilles Gold Limited vs. Red Pine Exploration
Performance |
| Timeline |
| Antilles Gold Limited |
| Red Pine Exploration |
Antilles Gold and Red Pine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antilles Gold and Red Pine
The main advantage of trading using opposite Antilles Gold and Red Pine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antilles Gold position performs unexpectedly, Red Pine 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 Red Pine will offset losses from the drop in Red Pine's long position.| Antilles Gold vs. Aurion Resources | Antilles Gold vs. Liberty Gold Corp | Antilles Gold vs. Rio2 Limited | Antilles Gold vs. Orezone Gold Corp |
| Red Pine vs. Endurance Gold | Red Pine vs. Altamira Gold Corp | Red Pine vs. Grande Portage Resources | Red Pine vs. Tectonic Metals |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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