Correlation Between Bellevue Gold and International Tower
Can any of the company-specific risk be diversified away by investing in both Bellevue Gold and International Tower 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 Bellevue Gold and International Tower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellevue Gold Limited and International Tower Hill, you can compare the effects of market volatilities on Bellevue Gold and International Tower 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 Bellevue Gold with a short position of International Tower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Gold and International Tower.
Diversification Opportunities for Bellevue Gold and International Tower
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bellevue and International is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Gold Limited and International Tower Hill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Tower Hill and Bellevue Gold 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 Bellevue Gold Limited are associated (or correlated) with International Tower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Tower Hill has no effect on the direction of Bellevue Gold i.e., Bellevue Gold and International Tower go up and down completely randomly.
Pair Corralation between Bellevue Gold and International Tower
Assuming the 90 days horizon Bellevue Gold Limited is expected to generate 0.6 times more return on investment than International Tower. However, Bellevue Gold Limited is 1.67 times less risky than International Tower. It trades about -0.26 of its potential returns per unit of risk. International Tower Hill is currently generating about -0.21 per unit of risk. If you would invest 102.00 in Bellevue Gold Limited on September 1, 2024 and sell it today you would lose (20.00) from holding Bellevue Gold Limited or give up 19.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Bellevue Gold Limited vs. International Tower Hill
Performance |
| Timeline |
| Bellevue Gold Limited |
| International Tower Hill |
Bellevue Gold and International Tower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Gold and International Tower
The main advantage of trading using opposite Bellevue Gold and International Tower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Gold position performs unexpectedly, International Tower 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 International Tower will offset losses from the drop in International Tower's long position.| Bellevue Gold vs. Aurion Resources | Bellevue Gold vs. Rio2 Limited | Bellevue Gold vs. Palamina Corp | Bellevue Gold vs. BTU Metals Corp |
| International Tower vs. Vista Gold | International Tower vs. Golden Minerals | International Tower vs. Paramount Gold Nevada | International Tower vs. Tanzanian Royalty Exploration |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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