Correlation Between Collective Mining and Gander Gold
Can any of the company-specific risk be diversified away by investing in both Collective Mining and Gander 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 Collective Mining and Gander Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collective Mining and Gander Gold, you can compare the effects of market volatilities on Collective Mining and Gander 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 Collective Mining with a short position of Gander Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collective Mining and Gander Gold.
Diversification Opportunities for Collective Mining and Gander Gold
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Collective and Gander is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Collective Mining and Gander Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gander Gold and Collective Mining 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 Collective Mining are associated (or correlated) with Gander Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gander Gold has no effect on the direction of Collective Mining i.e., Collective Mining and Gander Gold go up and down completely randomly.
Pair Corralation between Collective Mining and Gander Gold
Assuming the 90 days horizon Collective Mining is expected to generate 8.94 times less return on investment than Gander Gold. But when comparing it to its historical volatility, Collective Mining is 8.23 times less risky than Gander Gold. It trades about 0.05 of its potential returns per unit of risk. Gander Gold is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Gander Gold on September 2, 2024 and sell it today you would lose (101.00) from holding Gander Gold or give up 87.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.55% |
| Values | Daily Returns |
Collective Mining vs. Gander Gold
Performance |
| Timeline |
| Collective Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Gander Gold |
Collective Mining and Gander Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collective Mining and Gander Gold
The main advantage of trading using opposite Collective Mining and Gander Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collective Mining position performs unexpectedly, Gander 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 Gander Gold will offset losses from the drop in Gander Gold's long position.| Collective Mining vs. Aurion Resources | Collective Mining vs. Bluestone Resources | Collective Mining vs. Cartier Resources | Collective Mining vs. Antioquia Gold |
| Gander Gold vs. Aurion Resources | Gander Gold vs. Rio2 Limited | Gander Gold vs. Palamina Corp | Gander Gold vs. Grande Portage 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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