Correlation Between Argonaut Gold and Liberty Gold
Can any of the company-specific risk be diversified away by investing in both Argonaut Gold and Liberty 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 Argonaut Gold and Liberty Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argonaut Gold and Liberty Gold Corp, you can compare the effects of market volatilities on Argonaut Gold and Liberty 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 Argonaut Gold with a short position of Liberty Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argonaut Gold and Liberty Gold.
Diversification Opportunities for Argonaut Gold and Liberty Gold
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Argonaut and Liberty is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Argonaut Gold and Liberty Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Gold Corp and Argonaut 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 Argonaut Gold are associated (or correlated) with Liberty Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Gold Corp has no effect on the direction of Argonaut Gold i.e., Argonaut Gold and Liberty Gold go up and down completely randomly.
Pair Corralation between Argonaut Gold and Liberty Gold
If you would invest 37.00 in Argonaut Gold on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Argonaut Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Argonaut Gold vs. Liberty Gold Corp
Performance |
| Timeline |
| Argonaut Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Liberty Gold Corp |
Argonaut Gold and Liberty Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argonaut Gold and Liberty Gold
The main advantage of trading using opposite Argonaut Gold and Liberty Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argonaut Gold position performs unexpectedly, Liberty 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 Liberty Gold will offset losses from the drop in Liberty Gold's long position.| Argonaut Gold vs. Aurion Resources | Argonaut Gold vs. Rio2 Limited | Argonaut Gold vs. Minera Alamos | Argonaut Gold vs. Liberty 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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