Correlation Between Amani Gold and Timberline Resources
Can any of the company-specific risk be diversified away by investing in both Amani Gold and Timberline Resources 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 Timberline Resources 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 Timberline Resources, you can compare the effects of market volatilities on Amani Gold and Timberline Resources 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 Timberline Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Timberline Resources.
Diversification Opportunities for Amani Gold and Timberline Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and Timberline is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold Limited and Timberline Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timberline Resources 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 Timberline Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timberline Resources has no effect on the direction of Amani Gold i.e., Amani Gold and Timberline Resources go up and down completely randomly.
Pair Corralation between Amani Gold and Timberline Resources
Assuming the 90 days horizon Amani Gold Limited is expected to generate 2.17 times more return on investment than Timberline Resources. However, Amani Gold is 2.17 times more volatile than Timberline Resources. It trades about 0.05 of its potential returns per unit of risk. Timberline Resources is currently generating about -0.01 per unit of risk. If you would invest 0.09 in Amani Gold Limited on August 29, 2024 and sell it today you would lose (0.08) from holding Amani Gold Limited or give up 88.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 35.71% |
| Values | Daily Returns |
Amani Gold Limited vs. Timberline Resources
Performance |
| Timeline |
| Amani Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Timberline Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amani Gold and Timberline Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Timberline Resources
The main advantage of trading using opposite Amani Gold and Timberline Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, Timberline Resources 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 Timberline Resources will offset losses from the drop in Timberline Resources' long position.| Amani Gold vs. Antioquia Gold | Amani Gold vs. Asante Gold | Amani Gold vs. Bluestone Resources | Amani Gold vs. Big Ridge Gold |
| Timberline Resources vs. Sokoman Minerals Corp | Timberline Resources vs. Irving Resources | Timberline Resources vs. Lion One Metals | Timberline Resources vs. Exploits Discovery Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |