Correlation Between Gold79 Mines and Platinum Group
Can any of the company-specific risk be diversified away by investing in both Gold79 Mines and Platinum Group 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 Gold79 Mines and Platinum Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold79 Mines and Platinum Group Metals, you can compare the effects of market volatilities on Gold79 Mines and Platinum Group 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 Gold79 Mines with a short position of Platinum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold79 Mines and Platinum Group.
Diversification Opportunities for Gold79 Mines and Platinum Group
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gold79 and Platinum is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gold79 Mines and Platinum Group Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group Metals and Gold79 Mines 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 Gold79 Mines are associated (or correlated) with Platinum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group Metals has no effect on the direction of Gold79 Mines i.e., Gold79 Mines and Platinum Group go up and down completely randomly.
Pair Corralation between Gold79 Mines and Platinum Group
Assuming the 90 days horizon Gold79 Mines is expected to generate 0.99 times more return on investment than Platinum Group. However, Gold79 Mines is 1.01 times less risky than Platinum Group. It trades about 0.11 of its potential returns per unit of risk. Platinum Group Metals is currently generating about 0.08 per unit of risk. If you would invest 18.00 in Gold79 Mines on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Gold79 Mines or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Gold79 Mines vs. Platinum Group Metals
Performance |
| Timeline |
| Gold79 Mines |
| Platinum Group Metals |
Gold79 Mines and Platinum Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold79 Mines and Platinum Group
The main advantage of trading using opposite Gold79 Mines and Platinum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold79 Mines position performs unexpectedly, Platinum Group 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 Platinum Group will offset losses from the drop in Platinum Group's long position.| Gold79 Mines vs. Arctic Star Exploration | Gold79 Mines vs. American Clean Resources | Gold79 Mines vs. Arras Minerals Corp | Gold79 Mines vs. American Creek Resources |
| Platinum Group vs. Endeavour Silver Corp | Platinum Group vs. Avino Silver Gold | Platinum Group vs. Fortuna Silver Mines | Platinum Group vs. Impala Platinum 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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