Correlation Between Champion Iron and Unigold
Can any of the company-specific risk be diversified away by investing in both Champion Iron and Unigold 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 Champion Iron and Unigold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Iron and Unigold, you can compare the effects of market volatilities on Champion Iron and Unigold 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 Champion Iron with a short position of Unigold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Iron and Unigold.
Diversification Opportunities for Champion Iron and Unigold
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champion and Unigold is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Champion Iron and Unigold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigold and Champion Iron 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 Champion Iron are associated (or correlated) with Unigold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigold has no effect on the direction of Champion Iron i.e., Champion Iron and Unigold go up and down completely randomly.
Pair Corralation between Champion Iron and Unigold
Assuming the 90 days trading horizon Champion Iron is expected to under-perform the Unigold. But the stock apears to be less risky and, when comparing its historical volatility, Champion Iron is 3.56 times less risky than Unigold. The stock trades about -0.03 of its potential returns per unit of risk. The Unigold is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Unigold on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Unigold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Champion Iron vs. Unigold
Performance |
| Timeline |
| Champion Iron |
| Unigold |
Champion Iron and Unigold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Iron and Unigold
The main advantage of trading using opposite Champion Iron and Unigold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Iron position performs unexpectedly, Unigold 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 Unigold will offset losses from the drop in Unigold's long position.| Champion Iron vs. Black Iron | Champion Iron vs. Wesdome Gold Mines | Champion Iron vs. GoGold Resources | Champion Iron vs. Mason Graphite |
| Unigold vs. First Majestic Silver | Unigold vs. Ivanhoe Energy | Unigold vs. Orezone Gold Corp | Unigold vs. Faraday Copper 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |