Correlation Between Benton Resources and Golden Lake
Can any of the company-specific risk be diversified away by investing in both Benton Resources and Golden Lake 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 Benton Resources and Golden Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benton Resources and Golden Lake Exploration, you can compare the effects of market volatilities on Benton Resources and Golden Lake 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 Benton Resources with a short position of Golden Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benton Resources and Golden Lake.
Diversification Opportunities for Benton Resources and Golden Lake
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Benton and Golden is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Benton Resources and Golden Lake Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Lake Exploration and Benton 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 Benton Resources are associated (or correlated) with Golden Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Lake Exploration has no effect on the direction of Benton Resources i.e., Benton Resources and Golden Lake go up and down completely randomly.
Pair Corralation between Benton Resources and Golden Lake
Assuming the 90 days horizon Benton Resources is expected to generate 1.61 times more return on investment than Golden Lake. However, Benton Resources is 1.61 times more volatile than Golden Lake Exploration. It trades about 0.11 of its potential returns per unit of risk. Golden Lake Exploration is currently generating about 0.08 per unit of risk. If you would invest 6.00 in Benton Resources on October 26, 2024 and sell it today you would earn a total of 1.81 from holding Benton Resources or generate 30.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
Benton Resources vs. Golden Lake Exploration
Performance |
| Timeline |
| Benton Resources |
| Golden Lake Exploration |
Benton Resources and Golden Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benton Resources and Golden Lake
The main advantage of trading using opposite Benton Resources and Golden Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benton Resources position performs unexpectedly, Golden Lake 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 Golden Lake will offset losses from the drop in Golden Lake's long position.| Benton Resources vs. Aurelia Metals Limited | Benton Resources vs. Artemis Resources | Benton Resources vs. Ascendant Resources | Benton Resources vs. Altiplano Metals |
| Golden Lake vs. Prime Meridian Resources | Golden Lake vs. Macmahon Holdings Limited | Golden Lake vs. Rokmaster Resources Corp | Golden Lake vs. Hudson 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |