Correlation Between Golden Minerals and Tristar Gold
Can any of the company-specific risk be diversified away by investing in both Golden Minerals and Tristar 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 Golden Minerals and Tristar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Minerals and Tristar Gold, you can compare the effects of market volatilities on Golden Minerals and Tristar 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 Golden Minerals with a short position of Tristar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Minerals and Tristar Gold.
Diversification Opportunities for Golden Minerals and Tristar Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Tristar is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Golden Minerals and Tristar Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tristar Gold and Golden Minerals 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 Golden Minerals are associated (or correlated) with Tristar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tristar Gold has no effect on the direction of Golden Minerals i.e., Golden Minerals and Tristar Gold go up and down completely randomly.
Pair Corralation between Golden Minerals and Tristar Gold
Assuming the 90 days trading horizon Golden Minerals is expected to under-perform the Tristar Gold. In addition to that, Golden Minerals is 1.2 times more volatile than Tristar Gold. It trades about -0.11 of its total potential returns per unit of risk. Tristar Gold is currently generating about -0.12 per unit of volatility. If you would invest 13.00 in Tristar Gold on September 2, 2024 and sell it today you would lose (2.00) from holding Tristar Gold or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Golden Minerals vs. Tristar Gold
Performance |
| Timeline |
| Golden Minerals |
| Tristar Gold |
Golden Minerals and Tristar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Minerals and Tristar Gold
The main advantage of trading using opposite Golden Minerals and Tristar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Minerals position performs unexpectedly, Tristar 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 Tristar Gold will offset losses from the drop in Tristar Gold's long position.| Golden Minerals vs. Tristar Gold | Golden Minerals vs. Trilogy Metals | Golden Minerals vs. Hannan Metals | Golden Minerals vs. Lupaka Gold Corp |
| Tristar Gold vs. Hannan Metals | Tristar Gold vs. Cartier Resources | Tristar Gold vs. Lupaka Gold Corp | Tristar Gold vs. Angkor Resources Corp |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |