Correlation Between Bold Ventures and Mako Mining
Can any of the company-specific risk be diversified away by investing in both Bold Ventures and Mako Mining 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 Bold Ventures and Mako Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bold Ventures and Mako Mining Corp, you can compare the effects of market volatilities on Bold Ventures and Mako Mining 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 Bold Ventures with a short position of Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bold Ventures and Mako Mining.
Diversification Opportunities for Bold Ventures and Mako Mining
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bold and Mako is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bold Ventures and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining Corp and Bold Ventures 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 Bold Ventures are associated (or correlated) with Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of Bold Ventures i.e., Bold Ventures and Mako Mining go up and down completely randomly.
Pair Corralation between Bold Ventures and Mako Mining
Assuming the 90 days horizon Bold Ventures is expected to generate 3.0 times more return on investment than Mako Mining. However, Bold Ventures is 3.0 times more volatile than Mako Mining Corp. It trades about 0.07 of its potential returns per unit of risk. Mako Mining Corp is currently generating about 0.15 per unit of risk. If you would invest 5.00 in Bold Ventures on October 11, 2024 and sell it today you would earn a total of 0.50 from holding Bold Ventures or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bold Ventures vs. Mako Mining Corp
Performance |
| Timeline |
| Bold Ventures |
| Mako Mining Corp |
Bold Ventures and Mako Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bold Ventures and Mako Mining
The main advantage of trading using opposite Bold Ventures and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bold Ventures position performs unexpectedly, Mako Mining 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 Mako Mining will offset losses from the drop in Mako Mining's long position.| Bold Ventures vs. Osisko Metals | Bold Ventures vs. AKITA Drilling | Bold Ventures vs. Ramp Metals | Bold Ventures vs. Precision Drilling |
| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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