Correlation Between Bluestone Resources and Outcrop Gold
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Outcrop 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 Bluestone Resources and Outcrop Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Outcrop Gold Corp, you can compare the effects of market volatilities on Bluestone Resources and Outcrop 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 Bluestone Resources with a short position of Outcrop Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Outcrop Gold.
Diversification Opportunities for Bluestone Resources and Outcrop Gold
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bluestone and Outcrop is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Outcrop Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outcrop Gold Corp 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 Outcrop Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outcrop Gold Corp has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Outcrop Gold go up and down completely randomly.
Pair Corralation between Bluestone Resources and Outcrop Gold
Assuming the 90 days horizon Bluestone Resources is expected to generate 0.42 times more return on investment than Outcrop Gold. However, Bluestone Resources is 2.41 times less risky than Outcrop Gold. It trades about 0.01 of its potential returns per unit of risk. Outcrop Gold Corp is currently generating about -0.07 per unit of risk. If you would invest 30.00 in Bluestone Resources on September 3, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluestone Resources vs. Outcrop Gold Corp
Performance |
| Timeline |
| Bluestone Resources |
| Outcrop Gold Corp |
Bluestone Resources and Outcrop Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Outcrop Gold
The main advantage of trading using opposite Bluestone Resources and Outcrop Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Outcrop 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 Outcrop Gold will offset losses from the drop in Outcrop Gold's long position.| Bluestone Resources vs. Kore Mining | Bluestone Resources vs. Lumina Gold Corp | Bluestone Resources vs. Triumph Gold Corp | Bluestone Resources vs. Westhaven Ventures |
| Outcrop Gold vs. Strikepoint Gold | Outcrop Gold vs. Kootenay Silver | Outcrop Gold vs. Kore Mining | Outcrop Gold vs. Blackrock Silver 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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