Correlation Between Carlin Gold and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both Carlin Gold and Endurance 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 Carlin Gold and Endurance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlin Gold and Endurance Gold Corp, you can compare the effects of market volatilities on Carlin Gold and Endurance 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 Carlin Gold with a short position of Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlin Gold and Endurance Gold.
Diversification Opportunities for Carlin Gold and Endurance Gold
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlin and Endurance is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Carlin Gold and Endurance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold Corp 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 Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold Corp has no effect on the direction of Carlin Gold i.e., Carlin Gold and Endurance Gold go up and down completely randomly.
Pair Corralation between Carlin Gold and Endurance Gold
Assuming the 90 days horizon Carlin Gold is expected to generate 0.27 times more return on investment than Endurance Gold. However, Carlin Gold is 3.64 times less risky than Endurance Gold. It trades about -0.21 of its potential returns per unit of risk. Endurance Gold Corp is currently generating about -0.06 per unit of risk. If you would invest 19.00 in Carlin Gold on August 30, 2024 and sell it today you would lose (1.00) from holding Carlin Gold or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlin Gold vs. Endurance Gold Corp
Performance |
| Timeline |
| Carlin Gold |
| Endurance Gold Corp |
Carlin Gold and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlin Gold and Endurance Gold
The main advantage of trading using opposite Carlin Gold and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlin Gold position performs unexpectedly, Endurance 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 Endurance Gold will offset losses from the drop in Endurance Gold's long position.| Carlin Gold vs. Arizona Sonoran Copper | Carlin Gold vs. Filo Mining Corp | Carlin Gold vs. Marimaca Copper Corp | Carlin Gold vs. iShares Canadian HYBrid |
| Endurance Gold vs. Dynasty Gold Corp | Endurance Gold vs. Carlin Gold | Endurance Gold vs. Desert Gold Ventures | Endurance Gold vs. Cariboo Rose Resources |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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