Correlation Between Bird Construction and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Bird Construction and Alamos 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 Bird Construction and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bird Construction and Alamos Gold, you can compare the effects of market volatilities on Bird Construction and Alamos 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 Bird Construction with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bird Construction and Alamos Gold.
Diversification Opportunities for Bird Construction and Alamos Gold
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bird and Alamos is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bird Construction and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and Bird Construction 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 Bird Construction are associated (or correlated) with Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of Bird Construction i.e., Bird Construction and Alamos Gold go up and down completely randomly.
Pair Corralation between Bird Construction and Alamos Gold
Assuming the 90 days trading horizon Bird Construction is expected to generate 1.09 times more return on investment than Alamos Gold. However, Bird Construction is 1.09 times more volatile than Alamos Gold. It trades about 0.14 of its potential returns per unit of risk. Alamos Gold is currently generating about 0.09 per unit of risk. If you would invest 734.00 in Bird Construction on September 14, 2024 and sell it today you would earn a total of 1,978 from holding Bird Construction or generate 269.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bird Construction vs. Alamos Gold
Performance |
| Timeline |
| Bird Construction |
| Alamos Gold |
Bird Construction and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bird Construction and Alamos Gold
The main advantage of trading using opposite Bird Construction and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bird Construction position performs unexpectedly, Alamos 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.| Bird Construction vs. Knight Therapeutics | Bird Construction vs. Element Fleet Management | Bird Construction vs. Autocanada | Bird Construction vs. Westport Fuel Systems |
| Alamos Gold vs. Westshore Terminals Investment | Alamos Gold vs. Bird Construction | Alamos Gold vs. East Side Games | Alamos Gold vs. Upstart Investments |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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