Correlation Between Argo Gold and Contact Gold
Can any of the company-specific risk be diversified away by investing in both Argo Gold and Contact 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 Contact 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 Contact Gold Corp, you can compare the effects of market volatilities on Argo Gold and Contact 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 Contact Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and Contact Gold.
Diversification Opportunities for Argo Gold and Contact Gold
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Argo and Contact is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and Contact Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contact Gold 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 Contact Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contact Gold Corp has no effect on the direction of Argo Gold i.e., Argo Gold and Contact Gold go up and down completely randomly.
Pair Corralation between Argo Gold and Contact Gold
If you would invest 5.30 in Argo Gold on September 13, 2024 and sell it today you would earn a total of 0.40 from holding Argo Gold or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Argo Gold vs. Contact Gold Corp
Performance |
| Timeline |
| Argo Gold |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Argo Gold and Contact Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and Contact Gold
The main advantage of trading using opposite Argo Gold and Contact Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, Contact 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 Contact Gold will offset losses from the drop in Contact Gold'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 |
| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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