Correlation Between Allegiant Gold and Contact Gold
Can any of the company-specific risk be diversified away by investing in both Allegiant Gold and Contact 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 Allegiant Gold and Contact Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegiant Gold and Contact Gold Corp, you can compare the effects of market volatilities on Allegiant Gold and Contact 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 Allegiant Gold with a short position of Contact Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegiant Gold and Contact Gold.
Diversification Opportunities for Allegiant Gold and Contact Gold
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allegiant and Contact is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Allegiant Gold and Contact Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contact Gold Corp and Allegiant 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 Allegiant Gold are associated (or correlated) with Contact Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contact Gold Corp has no effect on the direction of Allegiant Gold i.e., Allegiant Gold and Contact Gold go up and down completely randomly.
Pair Corralation between Allegiant Gold and Contact Gold
If you would invest 12.00 in Allegiant Gold on September 5, 2024 and sell it today you would lose (1.00) from holding Allegiant Gold or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
Allegiant Gold vs. Contact Gold Corp
Performance |
| Timeline |
| Allegiant Gold |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Allegiant Gold and Contact Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegiant Gold and Contact Gold
The main advantage of trading using opposite Allegiant Gold and Contact Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegiant Gold position performs unexpectedly, Contact 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 Contact Gold will offset losses from the drop in Contact Gold's long position.| Allegiant Gold vs. Advantage Solutions | Allegiant Gold vs. Atlas Corp | Allegiant Gold vs. PureCycle Technologies | Allegiant Gold vs. WM Technology |
| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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