Correlation Between Artemis Gold and Lumina Gold
Can any of the company-specific risk be diversified away by investing in both Artemis Gold and Lumina 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 Lumina 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 Lumina Gold Corp, you can compare the effects of market volatilities on Artemis Gold and Lumina 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 Lumina Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Gold and Lumina Gold.
Diversification Opportunities for Artemis Gold and Lumina Gold
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artemis and Lumina is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Gold and Lumina Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumina Gold Corp 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 Lumina Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumina Gold Corp has no effect on the direction of Artemis Gold i.e., Artemis Gold and Lumina Gold go up and down completely randomly.
Pair Corralation between Artemis Gold and Lumina Gold
Assuming the 90 days trading horizon Artemis Gold is expected to generate 1.5 times more return on investment than Lumina Gold. However, Artemis Gold is 1.5 times more volatile than Lumina Gold Corp. It trades about 0.06 of its potential returns per unit of risk. Lumina Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 1,402 in Artemis Gold on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Artemis Gold or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Artemis Gold vs. Lumina Gold Corp
Performance |
| Timeline |
| Artemis Gold |
| Lumina Gold Corp |
Artemis Gold and Lumina Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artemis Gold and Lumina Gold
The main advantage of trading using opposite Artemis Gold and Lumina Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Gold position performs unexpectedly, Lumina 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 Lumina Gold will offset losses from the drop in Lumina Gold's long position.| Artemis Gold vs. Liberty Gold Corp | Artemis Gold vs. Osisko Development Corp | Artemis Gold vs. Ascot Resources | Artemis Gold vs. Equinox Gold Corp |
| Lumina Gold vs. Bluestone Resources | Lumina Gold vs. Kore Mining | Lumina Gold vs. Torq Resources | Lumina Gold vs. Regulus Resources |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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