Correlation Between Asante Gold and Roscan Gold
Can any of the company-specific risk be diversified away by investing in both Asante Gold and Roscan 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 Asante Gold and Roscan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asante Gold and Roscan Gold Corp, you can compare the effects of market volatilities on Asante Gold and Roscan 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 Asante Gold with a short position of Roscan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asante Gold and Roscan Gold.
Diversification Opportunities for Asante Gold and Roscan Gold
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asante and Roscan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Asante Gold and Roscan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roscan Gold Corp 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 Roscan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roscan Gold Corp has no effect on the direction of Asante Gold i.e., Asante Gold and Roscan Gold go up and down completely randomly.
Pair Corralation between Asante Gold and Roscan Gold
Assuming the 90 days horizon Asante Gold is expected to generate 2.52 times less return on investment than Roscan Gold. But when comparing it to its historical volatility, Asante Gold is 1.92 times less risky than Roscan Gold. It trades about 0.0 of its potential returns per unit of risk. Roscan Gold Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Roscan Gold Corp on September 12, 2024 and sell it today you would lose (6.00) from holding Roscan Gold Corp or give up 54.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asante Gold vs. Roscan Gold Corp
Performance |
| Timeline |
| Asante Gold |
| Roscan Gold Corp |
Asante Gold and Roscan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asante Gold and Roscan Gold
The main advantage of trading using opposite Asante Gold and Roscan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asante Gold position performs unexpectedly, Roscan 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 Roscan Gold will offset losses from the drop in Roscan Gold's long position.| Asante Gold vs. Advantage Solutions | Asante Gold vs. Atlas Corp | Asante Gold vs. PureCycle Technologies | Asante Gold vs. WM Technology |
| Roscan Gold vs. Aurion Resources | Roscan Gold vs. Minera Alamos | Roscan Gold vs. Rio2 Limited | Roscan Gold vs. Kalo Gold Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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