Correlation Between Contact Gold and Hummingbird Resources
Can any of the company-specific risk be diversified away by investing in both Contact Gold and Hummingbird 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 Contact Gold and Hummingbird Resources 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 Hummingbird Resources PLC, you can compare the effects of market volatilities on Contact Gold and Hummingbird 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 Contact Gold with a short position of Hummingbird Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and Hummingbird Resources.
Diversification Opportunities for Contact Gold and Hummingbird Resources
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Contact and Hummingbird is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and Hummingbird Resources PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hummingbird Resources PLC 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 Hummingbird Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hummingbird Resources PLC has no effect on the direction of Contact Gold i.e., Contact Gold and Hummingbird Resources go up and down completely randomly.
Pair Corralation between Contact Gold and Hummingbird Resources
If you would invest 1.38 in Contact Gold Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Contact Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Contact Gold Corp vs. Hummingbird Resources PLC
Performance |
| Timeline |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hummingbird Resources PLC |
Contact Gold and Hummingbird Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contact Gold and Hummingbird Resources
The main advantage of trading using opposite Contact Gold and Hummingbird Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Gold position performs unexpectedly, Hummingbird 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 Hummingbird Resources will offset losses from the drop in Hummingbird Resources' long position.| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold Corp |
| Hummingbird Resources vs. Fremont Gold | Hummingbird Resources vs. Norsemont Mining | Hummingbird Resources vs. Tudor Gold Corp | Hummingbird Resources vs. Japan Gold 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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