Correlation Between Commerce Resources and Golden Lake
Can any of the company-specific risk be diversified away by investing in both Commerce Resources and Golden Lake 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 Commerce Resources and Golden Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commerce Resources Corp and Golden Lake Exploration, you can compare the effects of market volatilities on Commerce Resources and Golden Lake 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 Commerce Resources with a short position of Golden Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commerce Resources and Golden Lake.
Diversification Opportunities for Commerce Resources and Golden Lake
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Commerce and Golden is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Commerce Resources Corp and Golden Lake Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Lake Exploration and Commerce Resources 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 Commerce Resources Corp are associated (or correlated) with Golden Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Lake Exploration has no effect on the direction of Commerce Resources i.e., Commerce Resources and Golden Lake go up and down completely randomly.
Pair Corralation between Commerce Resources and Golden Lake
Assuming the 90 days horizon Commerce Resources Corp is expected to under-perform the Golden Lake. But the otc stock apears to be less risky and, when comparing its historical volatility, Commerce Resources Corp is 1.55 times less risky than Golden Lake. The otc stock trades about -0.22 of its potential returns per unit of risk. The Golden Lake Exploration is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 3.39 in Golden Lake Exploration on November 4, 2024 and sell it today you would lose (0.56) from holding Golden Lake Exploration or give up 16.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commerce Resources Corp vs. Golden Lake Exploration
Performance |
| Timeline |
| Commerce Resources Corp |
| Golden Lake Exploration |
Commerce Resources and Golden Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commerce Resources and Golden Lake
The main advantage of trading using opposite Commerce Resources and Golden Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commerce Resources position performs unexpectedly, Golden Lake 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 Golden Lake will offset losses from the drop in Golden Lake's long position.| Commerce Resources vs. Great Western Minerals | Commerce Resources vs. StrikePoint Gold | Commerce Resources vs. Silver Elephant Mining | Commerce Resources vs. Eskay Mining Corp |
| Golden Lake vs. Prime Meridian Resources | Golden Lake vs. Macmahon Holdings Limited | Golden Lake vs. Rokmaster Resources Corp | Golden Lake vs. Hudson Resources |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |