Correlation Between Argo Gold and C2C Gold
Can any of the company-specific risk be diversified away by investing in both Argo Gold and C2C 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 C2C 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 C2C Gold Corp, you can compare the effects of market volatilities on Argo Gold and C2C 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 C2C Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and C2C Gold.
Diversification Opportunities for Argo Gold and C2C Gold
Very weak diversification
The 3 months correlation between Argo and C2C is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and C2C Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C2C 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 C2C Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C2C Gold Corp has no effect on the direction of Argo Gold i.e., Argo Gold and C2C Gold go up and down completely randomly.
Pair Corralation between Argo Gold and C2C Gold
Assuming the 90 days horizon Argo Gold is expected to under-perform the C2C Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Argo Gold is 2.16 times less risky than C2C Gold. The pink sheet trades about -0.24 of its potential returns per unit of risk. The C2C Gold Corp is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 10.00 in C2C Gold Corp on August 29, 2024 and sell it today you would lose (2.42) from holding C2C Gold Corp or give up 24.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Argo Gold vs. C2C Gold Corp
Performance |
| Timeline |
| Argo Gold |
| C2C Gold Corp |
Argo Gold and C2C Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and C2C Gold
The main advantage of trading using opposite Argo Gold and C2C Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, C2C 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 C2C Gold will offset losses from the drop in C2C Gold's long position.| Argo Gold vs. Vertiv Holdings Co | Argo Gold vs. Nasdaq Inc | Argo Gold vs. McDonalds | Argo Gold vs. Walmart |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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