Correlation Between Contact Gold and Collective Mining
Can any of the company-specific risk be diversified away by investing in both Contact Gold and Collective Mining 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 Contact Gold and Collective Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contact Gold Corp and Collective Mining, you can compare the effects of market volatilities on Contact Gold and Collective Mining 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 Contact Gold with a short position of Collective Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and Collective Mining.
Diversification Opportunities for Contact Gold and Collective Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Contact and Collective is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and Collective Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collective Mining and Contact 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 Contact Gold Corp are associated (or correlated) with Collective Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collective Mining has no effect on the direction of Contact Gold i.e., Contact Gold and Collective Mining go up and down completely randomly.
Pair Corralation between Contact Gold and Collective Mining
If you would invest 299.00 in Collective Mining on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Collective Mining or generate 10.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.16% |
| Values | Daily Returns |
Contact Gold Corp vs. Collective Mining
Performance |
| Timeline |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Collective Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Contact Gold and Collective Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contact Gold and Collective Mining
The main advantage of trading using opposite Contact Gold and Collective Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Gold position performs unexpectedly, Collective Mining 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 Collective Mining will offset losses from the drop in Collective Mining's long position.| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold Corp |
| Collective Mining vs. Aurion Resources | Collective Mining vs. Bluestone Resources | Collective Mining vs. Cartier Resources | Collective Mining vs. Antioquia Gold |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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