Correlation Between Amarc Resources and Giyani Metals
Can any of the company-specific risk be diversified away by investing in both Amarc Resources and Giyani Metals 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 Amarc Resources and Giyani Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amarc Resources and Giyani Metals Corp, you can compare the effects of market volatilities on Amarc Resources and Giyani Metals 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 Amarc Resources with a short position of Giyani Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarc Resources and Giyani Metals.
Diversification Opportunities for Amarc Resources and Giyani Metals
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amarc and Giyani is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amarc Resources and Giyani Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giyani Metals Corp and Amarc 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 Amarc Resources are associated (or correlated) with Giyani Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giyani Metals Corp has no effect on the direction of Amarc Resources i.e., Amarc Resources and Giyani Metals go up and down completely randomly.
Pair Corralation between Amarc Resources and Giyani Metals
Assuming the 90 days horizon Amarc Resources is expected to generate 0.81 times more return on investment than Giyani Metals. However, Amarc Resources is 1.24 times less risky than Giyani Metals. It trades about 0.05 of its potential returns per unit of risk. Giyani Metals Corp is currently generating about 0.02 per unit of risk. If you would invest 9.00 in Amarc Resources on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Amarc Resources or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amarc Resources vs. Giyani Metals Corp
Performance |
| Timeline |
| Amarc Resources |
| Giyani Metals Corp |
Amarc Resources and Giyani Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarc Resources and Giyani Metals
The main advantage of trading using opposite Amarc Resources and Giyani Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarc Resources position performs unexpectedly, Giyani Metals 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 Giyani Metals will offset losses from the drop in Giyani Metals' long position.The idea behind Amarc Resources and Giyani Metals Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Giyani Metals vs. Ascendant Resources | Giyani Metals vs. Cantex Mine Development | Giyani Metals vs. Amarc Resources | Giyani Metals vs. Sterling Metals 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |