Correlation Between Argo Gold and Almadex Minerals
Can any of the company-specific risk be diversified away by investing in both Argo Gold and Almadex Minerals 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 Argo Gold and Almadex Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Gold and Almadex Minerals, you can compare the effects of market volatilities on Argo Gold and Almadex Minerals 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 Argo Gold with a short position of Almadex Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and Almadex Minerals.
Diversification Opportunities for Argo Gold and Almadex Minerals
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Argo and Almadex is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and Almadex Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almadex Minerals and Argo 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 Argo Gold are associated (or correlated) with Almadex Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almadex Minerals has no effect on the direction of Argo Gold i.e., Argo Gold and Almadex Minerals go up and down completely randomly.
Pair Corralation between Argo Gold and Almadex Minerals
Assuming the 90 days horizon Argo Gold is expected to generate 17.52 times less return on investment than Almadex Minerals. But when comparing it to its historical volatility, Argo Gold is 8.9 times less risky than Almadex Minerals. It trades about 0.11 of its potential returns per unit of risk. Almadex Minerals is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Almadex Minerals on November 4, 2024 and sell it today you would earn a total of 7.00 from holding Almadex Minerals or generate 140.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Argo Gold vs. Almadex Minerals
Performance |
| Timeline |
| Argo Gold |
| Almadex Minerals |
Argo Gold and Almadex Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and Almadex Minerals
The main advantage of trading using opposite Argo Gold and Almadex Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, Almadex Minerals 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 Almadex Minerals will offset losses from the drop in Almadex Minerals' long position.| Argo Gold vs. Blue Star Gold | Argo Gold vs. Angkor Resources Corp | Argo Gold vs. Advance Gold Corp | Argo Gold vs. Advance United Holdings |
| Almadex Minerals vs. Minnova Corp | Almadex Minerals vs. Blue Star Gold | Almadex Minerals vs. Advance Gold Corp | Almadex Minerals vs. Argo Gold |
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 Stocks Directory module to find actively traded stocks across global markets.
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