Correlation Between BonTerra Resources and Banyan Gold
Can any of the company-specific risk be diversified away by investing in both BonTerra Resources and Banyan 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 Banyan 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 Banyan Gold Corp, you can compare the effects of market volatilities on BonTerra Resources and Banyan 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 Banyan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BonTerra Resources and Banyan Gold.
Diversification Opportunities for BonTerra Resources and Banyan Gold
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BonTerra and Banyan is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding BonTerra Resources and Banyan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banyan Gold Corp 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 Banyan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banyan Gold Corp has no effect on the direction of BonTerra Resources i.e., BonTerra Resources and Banyan Gold go up and down completely randomly.
Pair Corralation between BonTerra Resources and Banyan Gold
Assuming the 90 days horizon BonTerra Resources is expected to generate 1.44 times more return on investment than Banyan Gold. However, BonTerra Resources is 1.44 times more volatile than Banyan Gold Corp. It trades about 0.02 of its potential returns per unit of risk. Banyan Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 25.00 in BonTerra Resources on August 30, 2024 and sell it today you would earn a total of 0.00 from holding BonTerra Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BonTerra Resources vs. Banyan Gold Corp
Performance |
| Timeline |
| BonTerra Resources |
| Banyan Gold Corp |
BonTerra Resources and Banyan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BonTerra Resources and Banyan Gold
The main advantage of trading using opposite BonTerra Resources and Banyan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BonTerra Resources position performs unexpectedly, Banyan 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 Banyan Gold will offset losses from the drop in Banyan Gold's long position.| BonTerra Resources vs. Cartier Resources | BonTerra Resources vs. Galway Metals | BonTerra Resources vs. Aurion Resources | BonTerra Resources vs. Minaurum Gold |
| Banyan Gold vs. Galway Metals | Banyan Gold vs. Rockhaven Resources | Banyan Gold vs. Cartier Resources | Banyan Gold vs. Maritime Resources 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |