Correlation Between Polymetal International and Leocor Gold
Can any of the company-specific risk be diversified away by investing in both Polymetal International and Leocor 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 Polymetal International and Leocor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polymetal International PLC and Leocor Gold, you can compare the effects of market volatilities on Polymetal International and Leocor 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 Polymetal International with a short position of Leocor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polymetal International and Leocor Gold.
Diversification Opportunities for Polymetal International and Leocor Gold
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polymetal and Leocor is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Polymetal International PLC and Leocor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leocor Gold and Polymetal International 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 Polymetal International PLC are associated (or correlated) with Leocor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leocor Gold has no effect on the direction of Polymetal International i.e., Polymetal International and Leocor Gold go up and down completely randomly.
Pair Corralation between Polymetal International and Leocor Gold
If you would invest 5.00 in Leocor Gold on September 1, 2024 and sell it today you would earn a total of 4.76 from holding Leocor Gold or generate 95.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Polymetal International PLC vs. Leocor Gold
Performance |
| Timeline |
| Polymetal International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Leocor Gold |
Polymetal International and Leocor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polymetal International and Leocor Gold
The main advantage of trading using opposite Polymetal International and Leocor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polymetal International position performs unexpectedly, Leocor 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 Leocor Gold will offset losses from the drop in Leocor Gold's long position.| Polymetal International vs. Fresnillo PLC | Polymetal International vs. Summa Silver Corp | Polymetal International vs. GoGold Resources | Polymetal International vs. Scottie Resources Corp |
| Leocor Gold vs. Defiance Silver Corp | Leocor Gold vs. HUMANA INC | Leocor Gold vs. SCOR PK | Leocor Gold vs. Aquagold International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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