Correlation Between Bluestone Resources and Argo Gold
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources 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 Bluestone Resources and Argo 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 Argo Gold, you can compare the effects of market volatilities on Bluestone Resources 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 Bluestone Resources with a short position of Argo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Argo Gold.
Diversification Opportunities for Bluestone Resources and Argo Gold
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bluestone and Argo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Argo Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Gold 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 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 Bluestone Resources i.e., Bluestone Resources and Argo Gold go up and down completely randomly.
Pair Corralation between Bluestone Resources and Argo Gold
Assuming the 90 days horizon Bluestone Resources is expected to generate 0.28 times more return on investment than Argo Gold. However, Bluestone Resources is 3.59 times less risky than Argo Gold. It trades about 0.01 of its potential returns per unit of risk. Argo Gold is currently generating about -0.02 per unit of risk. If you would invest 22.00 in Bluestone Resources on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Bluestone Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluestone Resources vs. Argo Gold
Performance |
| Timeline |
| Bluestone Resources |
| Argo Gold |
Bluestone Resources and Argo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Argo Gold
The main advantage of trading using opposite Bluestone Resources and Argo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources 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.| Bluestone Resources vs. Minnova Corp | Bluestone Resources vs. Argo Gold | Bluestone Resources vs. Advance Gold Corp | Bluestone Resources vs. Blue Star Gold |
| Argo Gold vs. Blue Star Gold | Argo Gold vs. Angkor Resources Corp | Argo Gold vs. Advance Gold Corp | Argo 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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