Correlation Between Bluestone Resources and Advance Gold
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Advance 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 Bluestone Resources and Advance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Advance Gold Corp, you can compare the effects of market volatilities on Bluestone Resources and Advance 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 Bluestone Resources with a short position of Advance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Advance Gold.
Diversification Opportunities for Bluestone Resources and Advance Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bluestone and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Advance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Gold Corp and Bluestone 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 Bluestone Resources are associated (or correlated) with Advance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Gold Corp has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Advance Gold go up and down completely randomly.
Pair Corralation between Bluestone Resources and Advance Gold
If you would invest 21.00 in Bluestone Resources on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Bluestone Resources or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bluestone Resources vs. Advance Gold Corp
Performance |
| Timeline |
| Bluestone Resources |
| Advance Gold Corp |
Bluestone Resources and Advance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Advance Gold
The main advantage of trading using opposite Bluestone Resources and Advance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Advance 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 Advance Gold will offset losses from the drop in Advance Gold's long position.| Bluestone Resources vs. ATT Inc | Bluestone Resources vs. Merck Company | Bluestone Resources vs. Walt Disney | Bluestone Resources vs. Caterpillar |
| Advance Gold vs. Minnova Corp | Advance Gold vs. Blue Star Gold | Advance Gold vs. Angkor Resources Corp | Advance Gold vs. Advance United Holdings |
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.
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