Correlation Between Evolution Mining and Maple Gold
Can any of the company-specific risk be diversified away by investing in both Evolution Mining and Maple 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 Evolution Mining and Maple Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Mining and Maple Gold Mines, you can compare the effects of market volatilities on Evolution Mining and Maple 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 Evolution Mining with a short position of Maple Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and Maple Gold.
Diversification Opportunities for Evolution Mining and Maple Gold
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evolution and Maple is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining and Maple Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Gold Mines and Evolution Mining 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 Evolution Mining are associated (or correlated) with Maple Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Gold Mines has no effect on the direction of Evolution Mining i.e., Evolution Mining and Maple Gold go up and down completely randomly.
Pair Corralation between Evolution Mining and Maple Gold
Assuming the 90 days horizon Evolution Mining is expected to generate 0.44 times more return on investment than Maple Gold. However, Evolution Mining is 2.27 times less risky than Maple Gold. It trades about 0.31 of its potential returns per unit of risk. Maple Gold Mines is currently generating about 0.03 per unit of risk. If you would invest 285.00 in Evolution Mining on October 20, 2024 and sell it today you would earn a total of 50.00 from holding Evolution Mining or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Evolution Mining vs. Maple Gold Mines
Performance |
| Timeline |
| Evolution Mining |
| Maple Gold Mines |
Evolution Mining and Maple Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and Maple Gold
The main advantage of trading using opposite Evolution Mining and Maple Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining position performs unexpectedly, Maple 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 Maple Gold will offset losses from the drop in Maple Gold's long position.| Evolution Mining vs. Regis Resources | Evolution Mining vs. West African Resources | Evolution Mining vs. Allegiant Gold | Evolution Mining vs. Minaurum Gold |
| Maple Gold vs. Steppe Gold | Maple Gold vs. Caledonia Mining | Maple Gold vs. Fortuna Silver Mines | Maple Gold vs. Sandstorm Gold Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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