Correlation Between Amarc Resources and Golden Goliath
Can any of the company-specific risk be diversified away by investing in both Amarc Resources and Golden Goliath 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 Golden Goliath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amarc Resources and Golden Goliath Resources, you can compare the effects of market volatilities on Amarc Resources and Golden Goliath 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 Golden Goliath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarc Resources and Golden Goliath.
Diversification Opportunities for Amarc Resources and Golden Goliath
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amarc and Golden is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amarc Resources and Golden Goliath Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Goliath Resources 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 Golden Goliath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Goliath Resources has no effect on the direction of Amarc Resources i.e., Amarc Resources and Golden Goliath go up and down completely randomly.
Pair Corralation between Amarc Resources and Golden Goliath
Assuming the 90 days horizon Amarc Resources is expected to generate 30.84 times less return on investment than Golden Goliath. But when comparing it to its historical volatility, Amarc Resources is 12.08 times less risky than Golden Goliath. It trades about 0.07 of its potential returns per unit of risk. Golden Goliath Resources is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 7.34 in Golden Goliath Resources on August 25, 2024 and sell it today you would lose (1.34) from holding Golden Goliath Resources or give up 18.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.79% |
| Values | Daily Returns |
Amarc Resources vs. Golden Goliath Resources
Performance |
| Timeline |
| Amarc Resources |
| Golden Goliath Resources |
Amarc Resources and Golden Goliath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarc Resources and Golden Goliath
The main advantage of trading using opposite Amarc Resources and Golden Goliath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarc Resources position performs unexpectedly, Golden Goliath 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 Golden Goliath will offset losses from the drop in Golden Goliath's long position.| Amarc Resources vs. Durango Resources | Amarc Resources vs. Avarone Metals | Amarc Resources vs. Pampa Metals | Amarc Resources vs. Sun Summit Minerals |
| Golden Goliath vs. Norra Metals Corp | Golden Goliath vs. Amarc Resources | Golden Goliath vs. ZincX Resources Corp | Golden Goliath vs. Nuinsco Resources Limited |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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