Correlation Between Asante Gold and Omineca Mining
Can any of the company-specific risk be diversified away by investing in both Asante Gold and Omineca Mining 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 Omineca Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asante Gold and Omineca Mining and, you can compare the effects of market volatilities on Asante Gold and Omineca Mining 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 Omineca Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asante Gold and Omineca Mining.
Diversification Opportunities for Asante Gold and Omineca Mining
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asante and Omineca is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Asante Gold and Omineca Mining and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omineca Mining 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 Omineca Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omineca Mining has no effect on the direction of Asante Gold i.e., Asante Gold and Omineca Mining go up and down completely randomly.
Pair Corralation between Asante Gold and Omineca Mining
Assuming the 90 days horizon Asante Gold is expected to generate 0.38 times more return on investment than Omineca Mining. However, Asante Gold is 2.61 times less risky than Omineca Mining. It trades about 0.11 of its potential returns per unit of risk. Omineca Mining and is currently generating about 0.01 per unit of risk. If you would invest 67.00 in Asante Gold on November 28, 2024 and sell it today you would earn a total of 5.00 from holding Asante Gold or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asante Gold vs. Omineca Mining and
Performance |
| Timeline |
| Asante Gold |
| Omineca Mining |
Asante Gold and Omineca Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asante Gold and Omineca Mining
The main advantage of trading using opposite Asante Gold and Omineca Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asante Gold position performs unexpectedly, Omineca Mining 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 Omineca Mining will offset losses from the drop in Omineca Mining's long position.| Asante Gold vs. Minnova Corp | Asante Gold vs. Argo Gold | Asante Gold vs. Advance Gold Corp | Asante Gold vs. Blue Star Gold |
| Omineca Mining vs. Quebec Precious Metals | Omineca Mining vs. Elemental Royalties Corp | Omineca Mining vs. Aurelius Minerals | Omineca Mining vs. Serabi Gold PLC |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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