Correlation Between Artemis Gold and Amex Exploration
Can any of the company-specific risk be diversified away by investing in both Artemis Gold and Amex Exploration 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 Artemis Gold and Amex Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artemis Gold and Amex Exploration, you can compare the effects of market volatilities on Artemis Gold and Amex Exploration 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 Artemis Gold with a short position of Amex Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Gold and Amex Exploration.
Diversification Opportunities for Artemis Gold and Amex Exploration
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artemis and Amex is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Gold and Amex Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amex Exploration and Artemis 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 Artemis Gold are associated (or correlated) with Amex Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amex Exploration has no effect on the direction of Artemis Gold i.e., Artemis Gold and Amex Exploration go up and down completely randomly.
Pair Corralation between Artemis Gold and Amex Exploration
Assuming the 90 days horizon Artemis Gold is expected to generate 1.32 times more return on investment than Amex Exploration. However, Artemis Gold is 1.32 times more volatile than Amex Exploration. It trades about 0.06 of its potential returns per unit of risk. Amex Exploration is currently generating about 0.02 per unit of risk. If you would invest 1,006 in Artemis Gold on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Artemis Gold or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artemis Gold vs. Amex Exploration
Performance |
| Timeline |
| Artemis Gold |
| Amex Exploration |
Artemis Gold and Amex Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artemis Gold and Amex Exploration
The main advantage of trading using opposite Artemis Gold and Amex Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Gold position performs unexpectedly, Amex Exploration 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 Amex Exploration will offset losses from the drop in Amex Exploration's long position.| Artemis Gold vs. Aurion Resources | Artemis Gold vs. Rio2 Limited | Artemis Gold vs. Palamina Corp | Artemis Gold vs. BTU Metals Corp |
| Amex Exploration vs. Minnova Corp | Amex Exploration vs. Argo Gold | Amex Exploration vs. Advance Gold Corp | Amex Exploration vs. Blue Star Gold |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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