Correlation Between Ascot Resources and Liberty Gold
Can any of the company-specific risk be diversified away by investing in both Ascot Resources and Liberty 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 Ascot Resources and Liberty Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascot Resources and Liberty Gold Corp, you can compare the effects of market volatilities on Ascot Resources and Liberty 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 Ascot Resources with a short position of Liberty Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascot Resources and Liberty Gold.
Diversification Opportunities for Ascot Resources and Liberty Gold
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ascot and Liberty is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ascot Resources and Liberty Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Gold Corp and Ascot Resources 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 Ascot Resources are associated (or correlated) with Liberty Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Gold Corp has no effect on the direction of Ascot Resources i.e., Ascot Resources and Liberty Gold go up and down completely randomly.
Pair Corralation between Ascot Resources and Liberty Gold
Assuming the 90 days trading horizon Ascot Resources is expected to under-perform the Liberty Gold. In addition to that, Ascot Resources is 1.41 times more volatile than Liberty Gold Corp. It trades about -0.01 of its total potential returns per unit of risk. Liberty Gold Corp is currently generating about -0.01 per unit of volatility. If you would invest 46.00 in Liberty Gold Corp on September 2, 2024 and sell it today you would lose (16.00) from holding Liberty Gold Corp or give up 34.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascot Resources vs. Liberty Gold Corp
Performance |
| Timeline |
| Ascot Resources |
| Liberty Gold Corp |
Ascot Resources and Liberty Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascot Resources and Liberty Gold
The main advantage of trading using opposite Ascot Resources and Liberty Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascot Resources position performs unexpectedly, Liberty 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 Liberty Gold will offset losses from the drop in Liberty Gold's long position.| Ascot Resources vs. Western Investment | Ascot Resources vs. Canlan Ice Sports | Ascot Resources vs. Atrium Mortgage Investment | Ascot Resources vs. Pembina Pipeline Corp |
| Liberty Gold vs. First Majestic Silver | Liberty Gold vs. Ivanhoe Energy | Liberty Gold vs. Orezone Gold Corp | Liberty Gold vs. Faraday Copper Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |