Correlation Between Bluestone Resources and Gander Gold
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Gander 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 Gander 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 Gander Gold, you can compare the effects of market volatilities on Bluestone Resources and Gander 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 Gander Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Gander Gold.
Diversification Opportunities for Bluestone Resources and Gander Gold
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bluestone and Gander is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Gander Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gander 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 Gander Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gander Gold has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Gander Gold go up and down completely randomly.
Pair Corralation between Bluestone Resources and Gander Gold
Assuming the 90 days horizon Bluestone Resources is expected to generate 6.61 times less return on investment than Gander Gold. But when comparing it to its historical volatility, Bluestone Resources is 3.25 times less risky than Gander Gold. It trades about 0.03 of its potential returns per unit of risk. Gander Gold is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Gander Gold on September 2, 2024 and sell it today you would lose (101.00) from holding Gander Gold or give up 87.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.55% |
| Values | Daily Returns |
Bluestone Resources vs. Gander Gold
Performance |
| Timeline |
| Bluestone Resources |
| Gander Gold |
Bluestone Resources and Gander Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Gander Gold
The main advantage of trading using opposite Bluestone Resources and Gander Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Gander 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 Gander Gold will offset losses from the drop in Gander Gold's long position.| Bluestone Resources vs. ATT Inc | Bluestone Resources vs. Merck Company | Bluestone Resources vs. Walt Disney | Bluestone Resources vs. Caterpillar |
| Gander Gold vs. Aurion Resources | Gander Gold vs. Rio2 Limited | Gander Gold vs. Palamina Corp | Gander Gold vs. Grande Portage 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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