Correlation Between Gungnir Resources and Argo Gold
Can any of the company-specific risk be diversified away by investing in both Gungnir Resources and Argo 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 Gungnir Resources and Argo Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gungnir Resources and Argo Gold, you can compare the effects of market volatilities on Gungnir Resources and Argo 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 Gungnir Resources with a short position of Argo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gungnir Resources and Argo Gold.
Diversification Opportunities for Gungnir Resources and Argo Gold
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gungnir and Argo is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gungnir Resources and Argo Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Gold and Gungnir Resources 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 Gungnir Resources are associated (or correlated) with Argo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Gold has no effect on the direction of Gungnir Resources i.e., Gungnir Resources and Argo Gold go up and down completely randomly.
Pair Corralation between Gungnir Resources and Argo Gold
Assuming the 90 days horizon Gungnir Resources is expected to under-perform the Argo Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Gungnir Resources is 1.43 times less risky than Argo Gold. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Argo Gold is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Argo Gold on September 3, 2024 and sell it today you would lose (0.50) from holding Argo Gold or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gungnir Resources vs. Argo Gold
Performance |
| Timeline |
| Gungnir Resources |
| Argo Gold |
Gungnir Resources and Argo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gungnir Resources and Argo Gold
The main advantage of trading using opposite Gungnir Resources and Argo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gungnir Resources position performs unexpectedly, Argo 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 Argo Gold will offset losses from the drop in Argo Gold's long position.| Gungnir Resources vs. Argo Gold | Gungnir Resources vs. Blue Star Gold | Gungnir Resources vs. Minnova Corp | Gungnir Resources vs. Angkor Resources Corp |
| Argo Gold vs. Blue Star Gold | Argo Gold vs. Angkor Resources Corp | Argo Gold vs. Advance Gold Corp | Argo Gold vs. Advance United 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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