Correlation Between Blue Star and Argo Gold
Can any of the company-specific risk be diversified away by investing in both Blue Star and Argo 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 Blue Star and Argo Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Star Gold and Argo Gold, you can compare the effects of market volatilities on Blue Star and Argo 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 Blue Star with a short position of Argo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Argo Gold.
Diversification Opportunities for Blue Star and Argo Gold
Weak diversification
The 3 months correlation between Blue and Argo is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Gold and Argo Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Gold and Blue Star 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 Blue Star Gold are associated (or correlated) with Argo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Gold has no effect on the direction of Blue Star i.e., Blue Star and Argo Gold go up and down completely randomly.
Pair Corralation between Blue Star and Argo Gold
Assuming the 90 days horizon Blue Star Gold is expected to generate 0.14 times more return on investment than Argo Gold. However, Blue Star Gold is 7.26 times less risky than Argo Gold. It trades about -0.21 of its potential returns per unit of risk. Argo Gold is currently generating about -0.27 per unit of risk. If you would invest 3.58 in Blue Star Gold on August 25, 2024 and sell it today you would lose (0.09) from holding Blue Star Gold or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Star Gold vs. Argo Gold
Performance |
| Timeline |
| Blue Star Gold |
| Argo Gold |
Blue Star and Argo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Argo Gold
The main advantage of trading using opposite Blue Star and Argo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star position performs unexpectedly, Argo 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 Argo Gold will offset losses from the drop in Argo Gold's long position.| Blue Star vs. Aurion Resources | Blue Star vs. Liberty Gold Corp | Blue Star vs. Rio2 Limited | Blue Star vs. Orezone Gold Corp |
| Argo Gold vs. Aurion Resources | Argo Gold vs. Liberty Gold Corp | Argo Gold vs. Rio2 Limited | Argo Gold vs. Orezone 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |