Correlation Between Asante Gold and GMV Minerals
Can any of the company-specific risk be diversified away by investing in both Asante Gold and GMV Minerals 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 Asante Gold and GMV Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asante Gold and GMV Minerals, you can compare the effects of market volatilities on Asante Gold and GMV Minerals 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 Asante Gold with a short position of GMV Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asante Gold and GMV Minerals.
Diversification Opportunities for Asante Gold and GMV Minerals
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asante and GMV is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Asante Gold and GMV Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMV Minerals and Asante 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 Asante Gold are associated (or correlated) with GMV Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMV Minerals has no effect on the direction of Asante Gold i.e., Asante Gold and GMV Minerals go up and down completely randomly.
Pair Corralation between Asante Gold and GMV Minerals
Assuming the 90 days horizon Asante Gold is expected to under-perform the GMV Minerals. But the pink sheet apears to be less risky and, when comparing its historical volatility, Asante Gold is 4.53 times less risky than GMV Minerals. The pink sheet trades about -0.32 of its potential returns per unit of risk. The GMV Minerals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8.26 in GMV Minerals on October 24, 2024 and sell it today you would earn a total of 0.74 from holding GMV Minerals or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Asante Gold vs. GMV Minerals
Performance |
| Timeline |
| Asante Gold |
| GMV Minerals |
Asante Gold and GMV Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asante Gold and GMV Minerals
The main advantage of trading using opposite Asante Gold and GMV Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asante Gold position performs unexpectedly, GMV Minerals 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 GMV Minerals will offset losses from the drop in GMV Minerals' long position.| Asante Gold vs. Minnova Corp | Asante Gold vs. Argo Gold | Asante Gold vs. Advance Gold Corp | Asante Gold vs. Blue Star Gold |
| GMV Minerals vs. Antilles Gold Limited | GMV Minerals vs. Guskin Gold Corp | GMV Minerals vs. Q2 Metals Corp | GMV Minerals vs. Bluestone 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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