Correlation Between Argo Gold and Advance United
Can any of the company-specific risk be diversified away by investing in both Argo Gold and Advance United 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 Advance United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Gold and Advance United Holdings, you can compare the effects of market volatilities on Argo Gold and Advance United 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 Advance United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and Advance United.
Diversification Opportunities for Argo Gold and Advance United
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Argo and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and Advance United Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance United Holdings 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 Advance United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance United Holdings has no effect on the direction of Argo Gold i.e., Argo Gold and Advance United go up and down completely randomly.
Pair Corralation between Argo Gold and Advance United
Assuming the 90 days horizon Argo Gold is expected to generate 1.87 times more return on investment than Advance United. However, Argo Gold is 1.87 times more volatile than Advance United Holdings. It trades about 0.02 of its potential returns per unit of risk. Advance United Holdings is currently generating about -0.09 per unit of risk. If you would invest 6.50 in Argo Gold on September 1, 2024 and sell it today you would lose (1.00) from holding Argo Gold or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Gold vs. Advance United Holdings
Performance |
| Timeline |
| Argo Gold |
| Advance United Holdings |
Argo Gold and Advance United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and Advance United
The main advantage of trading using opposite Argo Gold and Advance United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, Advance United 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 Advance United will offset losses from the drop in Advance United'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 |
| Advance United vs. Aurion Resources | Advance United vs. Rio2 Limited | Advance United vs. Palamina Corp | Advance United vs. BTU 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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