Correlation Between Contact Gold and Makara Mining
Can any of the company-specific risk be diversified away by investing in both Contact Gold and Makara 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 Makara 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 Makara Mining Corp, you can compare the effects of market volatilities on Contact Gold and Makara 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 Makara Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and Makara Mining.
Diversification Opportunities for Contact Gold and Makara Mining
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Contact and Makara is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and Makara Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makara Mining 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 Makara Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makara Mining Corp has no effect on the direction of Contact Gold i.e., Contact Gold and Makara Mining go up and down completely randomly.
Pair Corralation between Contact Gold and Makara Mining
If you would invest 10.00 in Makara Mining Corp on September 12, 2024 and sell it today you would lose (1.20) from holding Makara Mining Corp or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Contact Gold Corp vs. Makara Mining Corp
Performance |
| Timeline |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Makara Mining Corp |
Contact Gold and Makara Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contact Gold and Makara Mining
The main advantage of trading using opposite Contact Gold and Makara Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Gold position performs unexpectedly, Makara 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 Makara Mining will offset losses from the drop in Makara 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 |
| Makara Mining vs. Revival Gold | Makara Mining vs. Galiano Gold | Makara Mining vs. US Gold Corp | Makara Mining vs. HUMANA INC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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