Correlation Between Baru Gold and Dacian Gold
Can any of the company-specific risk be diversified away by investing in both Baru Gold and Dacian 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 Baru Gold and Dacian Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baru Gold Corp and Dacian Gold Limited, you can compare the effects of market volatilities on Baru Gold and Dacian 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 Baru Gold with a short position of Dacian Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baru Gold and Dacian Gold.
Diversification Opportunities for Baru Gold and Dacian Gold
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Baru and Dacian is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Baru Gold Corp and Dacian Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dacian Gold Limited and Baru 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 Baru Gold Corp are associated (or correlated) with Dacian Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dacian Gold Limited has no effect on the direction of Baru Gold i.e., Baru Gold and Dacian Gold go up and down completely randomly.
Pair Corralation between Baru Gold and Dacian Gold
Assuming the 90 days horizon Baru Gold Corp is expected to generate 3.36 times more return on investment than Dacian Gold. However, Baru Gold is 3.36 times more volatile than Dacian Gold Limited. It trades about 0.07 of its potential returns per unit of risk. Dacian Gold Limited is currently generating about 0.1 per unit of risk. If you would invest 1.68 in Baru Gold Corp on September 3, 2024 and sell it today you would earn a total of 3.11 from holding Baru Gold Corp or generate 185.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 30.71% |
| Values | Daily Returns |
Baru Gold Corp vs. Dacian Gold Limited
Performance |
| Timeline |
| Baru Gold Corp |
| Dacian Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baru Gold and Dacian Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baru Gold and Dacian Gold
The main advantage of trading using opposite Baru Gold and Dacian Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baru Gold position performs unexpectedly, Dacian 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 Dacian Gold will offset losses from the drop in Dacian Gold's long position.| Baru Gold vs. Harmony Gold Mining | Baru Gold vs. SPACE | Baru Gold vs. T Rowe Price | Baru Gold vs. Ampleforth |
| Dacian Gold vs. Minnova Corp | Dacian Gold vs. Argo Gold | Dacian Gold vs. Advance Gold Corp | Dacian Gold vs. Blue Star Gold |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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