Correlation Between Bluestone Resources and Guskin Gold
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Guskin 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 Guskin 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 Guskin Gold Corp, you can compare the effects of market volatilities on Bluestone Resources and Guskin 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 Guskin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Guskin Gold.
Diversification Opportunities for Bluestone Resources and Guskin Gold
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bluestone and Guskin is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Guskin Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guskin 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 Guskin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guskin Gold Corp has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Guskin Gold go up and down completely randomly.
Pair Corralation between Bluestone Resources and Guskin Gold
Assuming the 90 days horizon Bluestone Resources is expected to generate 11.85 times less return on investment than Guskin Gold. But when comparing it to its historical volatility, Bluestone Resources is 5.34 times less risky than Guskin Gold. It trades about 0.02 of its potential returns per unit of risk. Guskin Gold Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 75.00 in Guskin Gold Corp on September 4, 2024 and sell it today you would lose (74.99) from holding Guskin Gold Corp or give up 99.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.35% |
| Values | Daily Returns |
Bluestone Resources vs. Guskin Gold Corp
Performance |
| Timeline |
| Bluestone Resources |
| Guskin Gold Corp |
Bluestone Resources and Guskin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Guskin Gold
The main advantage of trading using opposite Bluestone Resources and Guskin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Guskin 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 Guskin Gold will offset losses from the drop in Guskin Gold's long position.| Bluestone Resources vs. Qubec Nickel Corp | Bluestone Resources vs. IGO Limited | Bluestone Resources vs. Avarone Metals | Bluestone Resources vs. Adriatic Metals PLC |
| Guskin Gold vs. GMV Minerals | Guskin Gold vs. Antilles Gold Limited | Guskin Gold vs. Q2 Metals Corp | Guskin Gold vs. Joshua Gold 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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