Correlation Between Artemis Gold and Newcore Gold
Can any of the company-specific risk be diversified away by investing in both Artemis Gold and Newcore 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 Artemis Gold and Newcore Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artemis Gold and Newcore Gold, you can compare the effects of market volatilities on Artemis Gold and Newcore 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 Artemis Gold with a short position of Newcore Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Gold and Newcore Gold.
Diversification Opportunities for Artemis Gold and Newcore Gold
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artemis and Newcore is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Gold and Newcore Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcore Gold 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 Newcore Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcore Gold has no effect on the direction of Artemis Gold i.e., Artemis Gold and Newcore Gold go up and down completely randomly.
Pair Corralation between Artemis Gold and Newcore Gold
Assuming the 90 days horizon Artemis Gold is expected to generate 2.03 times less return on investment than Newcore Gold. But when comparing it to its historical volatility, Artemis Gold is 1.85 times less risky than Newcore Gold. It trades about 0.12 of its potential returns per unit of risk. Newcore Gold is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 7.96 in Newcore Gold on December 11, 2024 and sell it today you would earn a total of 24.04 from holding Newcore Gold or generate 302.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.25% |
| Values | Daily Returns |
Artemis Gold vs. Newcore Gold
Performance |
| Timeline |
| Artemis Gold |
| Newcore Gold |
Artemis Gold and Newcore Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artemis Gold and Newcore Gold
The main advantage of trading using opposite Artemis Gold and Newcore Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Gold position performs unexpectedly, Newcore 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 Newcore Gold will offset losses from the drop in Newcore Gold's long position.| Artemis Gold vs. Precipitate Gold Corp | ||
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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