Correlation Between CHKEW Old and Almaden Minerals
Can any of the company-specific risk be diversified away by investing in both CHKEW Old and Almaden Minerals 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 CHKEW Old and Almaden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHKEW Old and Almaden Minerals, you can compare the effects of market volatilities on CHKEW Old and Almaden Minerals 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 CHKEW Old with a short position of Almaden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHKEW Old and Almaden Minerals.
Diversification Opportunities for CHKEW Old and Almaden Minerals
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHKEW and Almaden is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CHKEW Old and Almaden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almaden Minerals and CHKEW Old 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 CHKEW Old are associated (or correlated) with Almaden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almaden Minerals has no effect on the direction of CHKEW Old i.e., CHKEW Old and Almaden Minerals go up and down completely randomly.
Pair Corralation between CHKEW Old and Almaden Minerals
Assuming the 90 days horizon CHKEW Old is expected to generate 35.5 times more return on investment than Almaden Minerals. However, CHKEW Old is 35.5 times more volatile than Almaden Minerals. It trades about 0.14 of its potential returns per unit of risk. Almaden Minerals is currently generating about -0.07 per unit of risk. If you would invest 7,064 in CHKEW Old on November 2, 2024 and sell it today you would earn a total of 125.00 from holding CHKEW Old or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.63% |
| Values | Daily Returns |
CHKEW Old vs. Almaden Minerals
Performance |
| Timeline |
| CHKEW Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CHKEW Old and Almaden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHKEW Old and Almaden Minerals
The main advantage of trading using opposite CHKEW Old and Almaden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHKEW Old position performs unexpectedly, Almaden Minerals 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 Almaden Minerals will offset losses from the drop in Almaden Minerals' long position.The idea behind CHKEW Old and Almaden Minerals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Almaden Minerals vs. Antioquia Gold | Almaden Minerals vs. Asante Gold | Almaden Minerals vs. Bluestone Resources | Almaden Minerals vs. Big Ridge 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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