Correlation Between Asante Gold and US Gold
Can any of the company-specific risk be diversified away by investing in both Asante Gold and US 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 US 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 US Gold Corp, you can compare the effects of market volatilities on Asante Gold and US 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 US Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asante Gold and US Gold.
Diversification Opportunities for Asante Gold and US Gold
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asante and USAU is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Asante Gold and US Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US 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 US Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Gold Corp has no effect on the direction of Asante Gold i.e., Asante Gold and US Gold go up and down completely randomly.
Pair Corralation between Asante Gold and US Gold
Assuming the 90 days horizon Asante Gold is expected to under-perform the US Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Asante Gold is 1.5 times less risky than US Gold. The pink sheet trades about -0.04 of its potential returns per unit of risk. The US Gold Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 533.00 in US Gold Corp on August 31, 2024 and sell it today you would earn a total of 289.00 from holding US Gold Corp or generate 54.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asante Gold vs. US Gold Corp
Performance |
| Timeline |
| Asante Gold |
| US Gold Corp |
Asante Gold and US Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asante Gold and US Gold
The main advantage of trading using opposite Asante Gold and US Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asante Gold position performs unexpectedly, US 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 US Gold will offset losses from the drop in US Gold'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 |
| US Gold vs. Labrador Gold Corp | US Gold vs. Aurion Resources | US Gold vs. Puma Exploration | US Gold vs. Golden Star Resource |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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