Correlation Between Contact Gold and Wesdome Gold
Can any of the company-specific risk be diversified away by investing in both Contact Gold and Wesdome 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 Wesdome 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 Wesdome Gold Mines, you can compare the effects of market volatilities on Contact Gold and Wesdome 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 Wesdome Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and Wesdome Gold.
Diversification Opportunities for Contact Gold and Wesdome Gold
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Contact and Wesdome is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and Wesdome Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesdome Gold Mines 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 Wesdome Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesdome Gold Mines has no effect on the direction of Contact Gold i.e., Contact Gold and Wesdome Gold go up and down completely randomly.
Pair Corralation between Contact Gold and Wesdome Gold
If you would invest 510.00 in Wesdome Gold Mines on August 26, 2024 and sell it today you would earn a total of 352.00 from holding Wesdome Gold Mines or generate 69.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Contact Gold Corp vs. Wesdome Gold Mines
Performance |
| Timeline |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wesdome Gold Mines |
Contact Gold and Wesdome Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contact Gold and Wesdome Gold
The main advantage of trading using opposite Contact Gold and Wesdome Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Gold position performs unexpectedly, Wesdome 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 Wesdome Gold will offset losses from the drop in Wesdome Gold'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 |
| Wesdome Gold vs. Ascendant Resources | Wesdome Gold vs. Cantex Mine Development | Wesdome Gold vs. Amarc Resources | Wesdome Gold vs. Sterling Metals 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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