Correlation Between Bluestone Resources and Galway Metals
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Galway Metals 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 Bluestone Resources and Galway Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Galway Metals, you can compare the effects of market volatilities on Bluestone Resources and Galway Metals 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 Bluestone Resources with a short position of Galway Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Galway Metals.
Diversification Opportunities for Bluestone Resources and Galway Metals
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bluestone and Galway is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Galway Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galway Metals and Bluestone 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 Bluestone Resources are associated (or correlated) with Galway Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galway Metals has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Galway Metals go up and down completely randomly.
Pair Corralation between Bluestone Resources and Galway Metals
Assuming the 90 days horizon Bluestone Resources is expected to generate 0.31 times more return on investment than Galway Metals. However, Bluestone Resources is 3.23 times less risky than Galway Metals. It trades about 0.01 of its potential returns per unit of risk. Galway Metals is currently generating about -0.07 per unit of risk. If you would invest 30.00 in Bluestone Resources on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Bluestone Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluestone Resources vs. Galway Metals
Performance |
| Timeline |
| Bluestone Resources |
| Galway Metals |
Bluestone Resources and Galway Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Galway Metals
The main advantage of trading using opposite Bluestone Resources and Galway Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Galway Metals 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 Galway Metals will offset losses from the drop in Galway Metals' long position.| Bluestone Resources vs. Kore Mining | Bluestone Resources vs. Lumina Gold Corp | Bluestone Resources vs. Triumph Gold Corp | Bluestone Resources vs. Westhaven Ventures |
| Galway Metals vs. First Majestic Silver | Galway Metals vs. Ivanhoe Energy | Galway Metals vs. Orezone Gold Corp | Galway Metals vs. Faraday Copper 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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