Correlation Between Bonterra Resources and Angus Gold
Can any of the company-specific risk be diversified away by investing in both Bonterra Resources and Angus 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 Bonterra Resources and Angus Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonterra Resources and Angus Gold, you can compare the effects of market volatilities on Bonterra Resources and Angus 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 Bonterra Resources with a short position of Angus Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonterra Resources and Angus Gold.
Diversification Opportunities for Bonterra Resources and Angus Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bonterra and Angus is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bonterra Resources and Angus Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angus Gold and Bonterra 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 Bonterra Resources are associated (or correlated) with Angus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angus Gold has no effect on the direction of Bonterra Resources i.e., Bonterra Resources and Angus Gold go up and down completely randomly.
Pair Corralation between Bonterra Resources and Angus Gold
Assuming the 90 days horizon Bonterra Resources is expected to generate 0.57 times more return on investment than Angus Gold. However, Bonterra Resources is 1.76 times less risky than Angus Gold. It trades about -0.02 of its potential returns per unit of risk. Angus Gold is currently generating about -0.06 per unit of risk. If you would invest 18.00 in Bonterra Resources on September 1, 2024 and sell it today you would lose (1.00) from holding Bonterra Resources or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonterra Resources vs. Angus Gold
Performance |
| Timeline |
| Bonterra Resources |
| Angus Gold |
Bonterra Resources and Angus Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonterra Resources and Angus Gold
The main advantage of trading using opposite Bonterra Resources and Angus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonterra Resources position performs unexpectedly, Angus 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 Angus Gold will offset losses from the drop in Angus Gold's long position.| Bonterra Resources vs. Gander Gold | Bonterra Resources vs. Sokoman Minerals Corp | Bonterra Resources vs. Labrador Gold Corp | Bonterra Resources vs. Precipitate Gold Corp |
| Angus Gold vs. Minnova Corp | Angus Gold vs. Argo Gold | Angus Gold vs. Advance Gold Corp | Angus Gold vs. Blue Star Gold |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |