Correlation Between Amani Gold and Puma Exploration
Can any of the company-specific risk be diversified away by investing in both Amani Gold and Puma Exploration 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 Amani Gold and Puma Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold Limited and Puma Exploration, you can compare the effects of market volatilities on Amani Gold and Puma Exploration 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 Amani Gold with a short position of Puma Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Puma Exploration.
Diversification Opportunities for Amani Gold and Puma Exploration
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and Puma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold Limited and Puma Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma Exploration and Amani 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 Amani Gold Limited are associated (or correlated) with Puma Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma Exploration has no effect on the direction of Amani Gold i.e., Amani Gold and Puma Exploration go up and down completely randomly.
Pair Corralation between Amani Gold and Puma Exploration
If you would invest 5.55 in Puma Exploration on November 5, 2024 and sell it today you would earn a total of 0.45 from holding Puma Exploration or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Amani Gold Limited vs. Puma Exploration
Performance |
| Timeline |
| Amani Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Puma Exploration |
Amani Gold and Puma Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Puma Exploration
The main advantage of trading using opposite Amani Gold and Puma Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, Puma Exploration 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 Puma Exploration will offset losses from the drop in Puma Exploration's long position.| Amani Gold vs. Antioquia Gold | Amani Gold vs. Asante Gold | Amani Gold vs. Bluestone Resources | Amani Gold vs. Big Ridge Gold |
| Puma Exploration vs. Newcore Gold | Puma Exploration vs. Cerrado Gold | Puma Exploration vs. Palamina Corp | Puma Exploration vs. Gold Springs 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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