Correlation Between Argo Gold and Minnova Corp
Can any of the company-specific risk be diversified away by investing in both Argo Gold and Minnova Corp 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 Minnova Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Gold and Minnova Corp, you can compare the effects of market volatilities on Argo Gold and Minnova Corp 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 Minnova Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and Minnova Corp.
Diversification Opportunities for Argo Gold and Minnova Corp
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Argo and Minnova is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and Minnova Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minnova Corp 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 Minnova Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minnova Corp has no effect on the direction of Argo Gold i.e., Argo Gold and Minnova Corp go up and down completely randomly.
Pair Corralation between Argo Gold and Minnova Corp
Assuming the 90 days horizon Argo Gold is expected to generate 45.16 times less return on investment than Minnova Corp. But when comparing it to its historical volatility, Argo Gold is 15.37 times less risky than Minnova Corp. It trades about 0.03 of its potential returns per unit of risk. Minnova Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Minnova Corp on January 15, 2025 and sell it today you would lose (4.27) from holding Minnova Corp or give up 61.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Argo Gold vs. Minnova Corp
Performance |
| Timeline |
| Argo Gold |
| Minnova Corp |
Argo Gold and Minnova Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and Minnova Corp
The main advantage of trading using opposite Argo Gold and Minnova Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, Minnova Corp 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 Minnova Corp will offset losses from the drop in Minnova Corp's 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 |
| Minnova Corp vs. Blue Star Gold | Minnova Corp vs. Advance Gold Corp | Minnova Corp vs. Angkor Resources Corp | Minnova Corp vs. Advance United Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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