Correlation Between Centerra Gold and Blue Moon
Can any of the company-specific risk be diversified away by investing in both Centerra Gold and Blue Moon 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 Centerra Gold and Blue Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centerra Gold and Blue Moon Zinc, you can compare the effects of market volatilities on Centerra Gold and Blue Moon 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 Centerra Gold with a short position of Blue Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centerra Gold and Blue Moon.
Diversification Opportunities for Centerra Gold and Blue Moon
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Centerra and Blue is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Centerra Gold and Blue Moon Zinc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Moon Zinc and Centerra 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 Centerra Gold are associated (or correlated) with Blue Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Moon Zinc has no effect on the direction of Centerra Gold i.e., Centerra Gold and Blue Moon go up and down completely randomly.
Pair Corralation between Centerra Gold and Blue Moon
If you would invest 840.00 in Centerra Gold on October 28, 2024 and sell it today you would earn a total of 36.00 from holding Centerra Gold or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centerra Gold vs. Blue Moon Zinc
Performance |
| Timeline |
| Centerra Gold |
| Blue Moon Zinc |
Centerra Gold and Blue Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centerra Gold and Blue Moon
The main advantage of trading using opposite Centerra Gold and Blue Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centerra Gold position performs unexpectedly, Blue Moon 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 Blue Moon will offset losses from the drop in Blue Moon's long position.| Centerra Gold vs. Alamos Gold | Centerra Gold vs. NovaGold Resources | Centerra Gold vs. Eldorado Gold Corp | Centerra Gold vs. IAMGold |
| Blue Moon vs. Transatlantic Mining Corp | Blue Moon vs. Opus One Resources | Blue Moon vs. Grosvenor Resource 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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