Correlation Between Bluestone Resources and Gold Reserve
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Gold Reserve 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 Gold Reserve into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Gold Reserve, you can compare the effects of market volatilities on Bluestone Resources and Gold Reserve 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 Gold Reserve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Gold Reserve.
Diversification Opportunities for Bluestone Resources and Gold Reserve
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluestone and Gold is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Gold Reserve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Reserve 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 Gold Reserve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Reserve has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Gold Reserve go up and down completely randomly.
Pair Corralation between Bluestone Resources and Gold Reserve
Assuming the 90 days horizon Bluestone Resources is expected to generate 2.54 times more return on investment than Gold Reserve. However, Bluestone Resources is 2.54 times more volatile than Gold Reserve. It trades about 0.04 of its potential returns per unit of risk. Gold Reserve is currently generating about 0.0 per unit of risk. If you would invest 20.00 in Bluestone Resources on August 26, 2024 and sell it today you would earn a total of 2.00 from holding Bluestone Resources or generate 10.0% 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. Gold Reserve
Performance |
| Timeline |
| Bluestone Resources |
| Gold Reserve |
Bluestone Resources and Gold Reserve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Gold Reserve
The main advantage of trading using opposite Bluestone Resources and Gold Reserve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Gold Reserve 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 Gold Reserve will offset losses from the drop in Gold Reserve's long position.| Bluestone Resources vs. Norra Metals Corp | Bluestone Resources vs. ZincX Resources Corp | Bluestone Resources vs. Nuinsco Resources Limited | Bluestone Resources vs. South Star Battery |
| Gold Reserve vs. Monarch Mining | Gold Reserve vs. Lundin Gold | Gold Reserve vs. Liberty Gold Corp | Gold Reserve vs. Minera Alamos |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |