Correlation Between Antilles Gold and Sabre Gold
Can any of the company-specific risk be diversified away by investing in both Antilles Gold and Sabre 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 Antilles Gold and Sabre Gold 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 Sabre Gold Mines, you can compare the effects of market volatilities on Antilles Gold and Sabre 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 Antilles Gold with a short position of Sabre Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antilles Gold and Sabre Gold.
Diversification Opportunities for Antilles Gold and Sabre Gold
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Antilles and Sabre is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Antilles Gold Limited and Sabre Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Gold Mines 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 Sabre Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Gold Mines has no effect on the direction of Antilles Gold i.e., Antilles Gold and Sabre Gold go up and down completely randomly.
Pair Corralation between Antilles Gold and Sabre Gold
Assuming the 90 days horizon Antilles Gold Limited is expected to generate 10.71 times more return on investment than Sabre Gold. However, Antilles Gold is 10.71 times more volatile than Sabre Gold Mines. It trades about 0.13 of its potential returns per unit of risk. Sabre Gold Mines is currently generating about 0.03 per unit of risk. If you would invest 1.80 in Antilles Gold Limited on September 14, 2024 and sell it today you would lose (1.50) from holding Antilles Gold Limited or give up 83.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Antilles Gold Limited vs. Sabre Gold Mines
Performance |
| Timeline |
| Antilles Gold Limited |
| Sabre Gold Mines |
Antilles Gold and Sabre Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antilles Gold and Sabre Gold
The main advantage of trading using opposite Antilles Gold and Sabre Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antilles Gold position performs unexpectedly, Sabre 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 Sabre Gold will offset losses from the drop in Sabre Gold's long position.| Antilles Gold vs. Revival Gold | Antilles Gold vs. Galiano Gold | Antilles Gold vs. US Gold Corp | Antilles Gold vs. HUMANA INC |
| Sabre Gold vs. Papaya Growth Opportunity | Sabre Gold vs. HUMANA INC | Sabre Gold vs. Barloworld Ltd ADR | Sabre Gold vs. Morningstar Unconstrained Allocation |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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