Correlation Between Bluestone Resources and Baru Gold
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Baru 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 Baru 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 Baru Gold Corp, you can compare the effects of market volatilities on Bluestone Resources and Baru 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 Baru Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Baru Gold.
Diversification Opportunities for Bluestone Resources and Baru Gold
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bluestone and Baru is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Baru Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baru 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 Baru Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baru Gold Corp has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Baru Gold go up and down completely randomly.
Pair Corralation between Bluestone Resources and Baru Gold
Assuming the 90 days horizon Bluestone Resources is expected to generate 1.58 times less return on investment than Baru Gold. But when comparing it to its historical volatility, Bluestone Resources is 1.03 times less risky than Baru Gold. It trades about 0.04 of its potential returns per unit of risk. Baru Gold Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.40 in Baru Gold Corp on August 26, 2024 and sell it today you would earn a total of 1.31 from holding Baru Gold Corp or generate 93.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.29% |
| Values | Daily Returns |
Bluestone Resources vs. Baru Gold Corp
Performance |
| Timeline |
| Bluestone Resources |
| Baru Gold Corp |
Bluestone Resources and Baru Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Baru Gold
The main advantage of trading using opposite Bluestone Resources and Baru Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Baru 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 Baru Gold will offset losses from the drop in Baru Gold's long position.| Bluestone Resources vs. Norra Metals Corp | Bluestone Resources vs. ZincX Resources Corp | Bluestone Resources vs. Nuinsco Resources Limited | Bluestone Resources vs. Mundoro Capital |
| Baru Gold vs. Aurion Resources | Baru Gold vs. Liberty Gold Corp | Baru Gold vs. Orezone Gold Corp | Baru Gold vs. Radisson Mining Resources |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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