Correlation Between Carlin Gold and Conquest Resources
Can any of the company-specific risk be diversified away by investing in both Carlin Gold and Conquest Resources 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 Carlin Gold and Conquest Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlin Gold and Conquest Resources, you can compare the effects of market volatilities on Carlin Gold and Conquest Resources 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 Carlin Gold with a short position of Conquest Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlin Gold and Conquest Resources.
Diversification Opportunities for Carlin Gold and Conquest Resources
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlin and Conquest is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Carlin Gold and Conquest Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquest Resources and Carlin 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 Carlin Gold are associated (or correlated) with Conquest Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquest Resources has no effect on the direction of Carlin Gold i.e., Carlin Gold and Conquest Resources go up and down completely randomly.
Pair Corralation between Carlin Gold and Conquest Resources
Assuming the 90 days horizon Carlin Gold is expected to generate 0.81 times more return on investment than Conquest Resources. However, Carlin Gold is 1.23 times less risky than Conquest Resources. It trades about 0.22 of its potential returns per unit of risk. Conquest Resources is currently generating about 0.06 per unit of risk. If you would invest 14.00 in Carlin Gold on November 28, 2024 and sell it today you would earn a total of 7.00 from holding Carlin Gold or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlin Gold vs. Conquest Resources
Performance |
| Timeline |
| Carlin Gold |
| Conquest Resources |
Carlin Gold and Conquest Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlin Gold and Conquest Resources
The main advantage of trading using opposite Carlin Gold and Conquest Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlin Gold position performs unexpectedly, Conquest Resources 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 Conquest Resources will offset losses from the drop in Conquest Resources' long position.| Carlin Gold vs. CNJ Capital Investments | Carlin Gold vs. Canadian General Investments | Carlin Gold vs. Homerun Resources | Carlin Gold vs. Farstarcap Investment Corp |
| Conquest Resources vs. Canso Credit Trust | Conquest Resources vs. Orbit Garant Drilling | Conquest Resources vs. Stampede Drilling | Conquest Resources vs. Medical Facilities |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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