Correlation Between Contact Gold and Exploits Discovery
Can any of the company-specific risk be diversified away by investing in both Contact Gold and Exploits Discovery 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 Exploits Discovery 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 Exploits Discovery Corp, you can compare the effects of market volatilities on Contact Gold and Exploits Discovery 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 Exploits Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and Exploits Discovery.
Diversification Opportunities for Contact Gold and Exploits Discovery
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Contact and Exploits is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and Exploits Discovery Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploits Discovery 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 Exploits Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploits Discovery Corp has no effect on the direction of Contact Gold i.e., Contact Gold and Exploits Discovery go up and down completely randomly.
Pair Corralation between Contact Gold and Exploits Discovery
If you would invest 1.38 in Contact Gold Corp on September 14, 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 | 4.76% |
| Values | Daily Returns |
Contact Gold Corp vs. Exploits Discovery Corp
Performance |
| Timeline |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Exploits Discovery Corp |
Contact Gold and Exploits Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contact Gold and Exploits Discovery
The main advantage of trading using opposite Contact Gold and Exploits Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Gold position performs unexpectedly, Exploits Discovery 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 Exploits Discovery will offset losses from the drop in Exploits Discovery'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 |
| Exploits Discovery vs. Labrador Gold Corp | Exploits Discovery vs. Banyan Gold Corp | Exploits Discovery vs. Mako Mining Corp | Exploits Discovery vs. Puma Exploration |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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