Correlation Between Contact Gold and Liberty Gold
Can any of the company-specific risk be diversified away by investing in both Contact Gold and Liberty 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 Contact Gold and Liberty Gold 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 Liberty Gold Corp, you can compare the effects of market volatilities on Contact Gold and Liberty 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 Contact Gold with a short position of Liberty Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and Liberty Gold.
Diversification Opportunities for Contact Gold and Liberty Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Contact and Liberty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and Liberty Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Gold Corp 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 Liberty Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Gold Corp has no effect on the direction of Contact Gold i.e., Contact Gold and Liberty Gold go up and down completely randomly.
Pair Corralation between Contact Gold and Liberty Gold
If you would invest 21.00 in Liberty Gold Corp on December 4, 2024 and sell it today you would earn a total of 1.00 from holding Liberty Gold Corp or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Contact Gold Corp vs. Liberty Gold Corp
Performance |
| Timeline |
| Contact Gold Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Liberty Gold Corp |
Contact Gold and Liberty Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contact Gold and Liberty Gold
The main advantage of trading using opposite Contact Gold and Liberty Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Gold position performs unexpectedly, Liberty 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 Liberty Gold will offset losses from the drop in Liberty Gold's long position.| Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold Corp | Contact Gold vs. Precipitate Gold Corp |
| Liberty Gold vs. Rio2 Limited | Liberty Gold vs. Aurion Resources | Liberty Gold vs. Norsemont Mining | Liberty Gold vs. Minaurum 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |