Correlation Between Caldas Gold and New Pacific
Can any of the company-specific risk be diversified away by investing in both Caldas Gold and New Pacific 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 Caldas Gold and New Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caldas Gold and New Pacific Metals, you can compare the effects of market volatilities on Caldas Gold and New Pacific 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 Caldas Gold with a short position of New Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caldas Gold and New Pacific.
Diversification Opportunities for Caldas Gold and New Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caldas and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caldas Gold and New Pacific Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Pacific Metals and Caldas 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 Caldas Gold are associated (or correlated) with New Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Pacific Metals has no effect on the direction of Caldas Gold i.e., Caldas Gold and New Pacific go up and down completely randomly.
Pair Corralation between Caldas Gold and New Pacific
If you would invest 126.00 in New Pacific Metals on November 2, 2024 and sell it today you would earn a total of 1.00 from holding New Pacific Metals or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Caldas Gold vs. New Pacific Metals
Performance |
| Timeline |
| Caldas Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New Pacific Metals |
Caldas Gold and New Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caldas Gold and New Pacific
The main advantage of trading using opposite Caldas Gold and New Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caldas Gold position performs unexpectedly, New Pacific 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 New Pacific will offset losses from the drop in New Pacific's long position.| Caldas Gold vs. Hurco Companies | Caldas Gold vs. ioneer Ltd American | Caldas Gold vs. ChampionX | Caldas Gold vs. Denison Mines Corp |
| New Pacific vs. Endeavour Silver Corp | New Pacific vs. Metalla Royalty Streaming | New Pacific vs. Hecla Mining | New Pacific vs. SilverCrest Metals |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |