Correlation Between Argo Gold and Revival Gold
Can any of the company-specific risk be diversified away by investing in both Argo Gold and Revival 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 Revival 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 Revival Gold, you can compare the effects of market volatilities on Argo Gold and Revival 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 Revival Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and Revival Gold.
Diversification Opportunities for Argo Gold and Revival Gold
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Argo and Revival is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and Revival Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revival 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 Revival Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revival Gold has no effect on the direction of Argo Gold i.e., Argo Gold and Revival Gold go up and down completely randomly.
Pair Corralation between Argo Gold and Revival Gold
Assuming the 90 days horizon Argo Gold is expected to generate 1.89 times more return on investment than Revival Gold. However, Argo Gold is 1.89 times more volatile than Revival Gold. It trades about 0.06 of its potential returns per unit of risk. Revival Gold is currently generating about -0.01 per unit of risk. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Gold vs. Revival Gold
Performance |
| Timeline |
| Argo Gold |
| Revival Gold |
Argo Gold and Revival Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and Revival Gold
The main advantage of trading using opposite Argo Gold and Revival Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, Revival 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 Revival Gold will offset losses from the drop in Revival 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 |
| Revival Gold vs. Westward Gold | Revival Gold vs. Heliostar Metals | Revival Gold vs. Cabral Gold | Revival Gold vs. Cassiar 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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