Correlation Between Huntsman Exploration and Bullion Gold
Can any of the company-specific risk be diversified away by investing in both Huntsman Exploration and Bullion 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 Huntsman Exploration and Bullion Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntsman Exploration and Bullion Gold Resources, you can compare the effects of market volatilities on Huntsman Exploration and Bullion 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 Huntsman Exploration with a short position of Bullion Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntsman Exploration and Bullion Gold.
Diversification Opportunities for Huntsman Exploration and Bullion Gold
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huntsman and Bullion is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Huntsman Exploration and Bullion Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bullion Gold Resources and Huntsman Exploration 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 Huntsman Exploration are associated (or correlated) with Bullion Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bullion Gold Resources has no effect on the direction of Huntsman Exploration i.e., Huntsman Exploration and Bullion Gold go up and down completely randomly.
Pair Corralation between Huntsman Exploration and Bullion Gold
Assuming the 90 days horizon Huntsman Exploration is expected to generate 2.5 times more return on investment than Bullion Gold. However, Huntsman Exploration is 2.5 times more volatile than Bullion Gold Resources. It trades about 0.05 of its potential returns per unit of risk. Bullion Gold Resources is currently generating about 0.03 per unit of risk. If you would invest 7.00 in Huntsman Exploration on November 27, 2024 and sell it today you would lose (2.22) from holding Huntsman Exploration or give up 31.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Huntsman Exploration vs. Bullion Gold Resources
Performance |
| Timeline |
| Huntsman Exploration |
| Bullion Gold Resources |
Huntsman Exploration and Bullion Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntsman Exploration and Bullion Gold
The main advantage of trading using opposite Huntsman Exploration and Bullion Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntsman Exploration position performs unexpectedly, Bullion 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 Bullion Gold will offset losses from the drop in Bullion Gold's long position.| Huntsman Exploration vs. Aurelia Metals Limited | Huntsman Exploration vs. Adriatic Metals PLC | Huntsman Exploration vs. American Helium | Huntsman Exploration vs. Progressive Planet Solutions |
| Bullion Gold vs. Tartisan Nickel Corp | Bullion Gold vs. Euro Manganese | Bullion Gold vs. American CuMo Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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