Correlation Between Argo Gold and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both Argo Gold and Antioquia 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 Argo Gold and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Gold and Antioquia Gold, you can compare the effects of market volatilities on Argo Gold and Antioquia 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 Argo Gold with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and Antioquia Gold.
Diversification Opportunities for Argo Gold and Antioquia Gold
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Argo and Antioquia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold 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 Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of Argo Gold i.e., Argo Gold and Antioquia Gold go up and down completely randomly.
Pair Corralation between Argo Gold and Antioquia Gold
Assuming the 90 days horizon Argo Gold is expected to under-perform the Antioquia Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Argo Gold is 5.48 times less risky than Antioquia Gold. The pink sheet trades about -0.27 of its potential returns per unit of risk. The Antioquia Gold is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Antioquia Gold on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Gold vs. Antioquia Gold
Performance |
| Timeline |
| Argo Gold |
| Antioquia Gold |
Argo Gold and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and Antioquia Gold
The main advantage of trading using opposite Argo Gold and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, Antioquia 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.| Argo Gold vs. Aurion Resources | Argo Gold vs. Liberty Gold Corp | Argo Gold vs. Rio2 Limited | Argo Gold vs. Orezone Gold Corp |
| Antioquia Gold vs. Ascendant Resources | Antioquia Gold vs. Cantex Mine Development | Antioquia Gold vs. Amarc Resources | Antioquia Gold vs. Sterling Metals 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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