Correlation Between Cerrado Gold and Roscan Gold
Can any of the company-specific risk be diversified away by investing in both Cerrado Gold and Roscan 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 Cerrado Gold and Roscan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cerrado Gold and Roscan Gold Corp, you can compare the effects of market volatilities on Cerrado Gold and Roscan 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 Cerrado Gold with a short position of Roscan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerrado Gold and Roscan Gold.
Diversification Opportunities for Cerrado Gold and Roscan Gold
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cerrado and Roscan is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cerrado Gold and Roscan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roscan Gold Corp and Cerrado 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 Cerrado Gold are associated (or correlated) with Roscan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roscan Gold Corp has no effect on the direction of Cerrado Gold i.e., Cerrado Gold and Roscan Gold go up and down completely randomly.
Pair Corralation between Cerrado Gold and Roscan Gold
Assuming the 90 days horizon Cerrado Gold is expected to generate 1.23 times more return on investment than Roscan Gold. However, Cerrado Gold is 1.23 times more volatile than Roscan Gold Corp. It trades about -0.04 of its potential returns per unit of risk. Roscan Gold Corp is currently generating about -0.18 per unit of risk. If you would invest 31.00 in Cerrado Gold on November 27, 2024 and sell it today you would lose (2.00) from holding Cerrado Gold or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cerrado Gold vs. Roscan Gold Corp
Performance |
| Timeline |
| Cerrado Gold |
| Roscan Gold Corp |
Cerrado Gold and Roscan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerrado Gold and Roscan Gold
The main advantage of trading using opposite Cerrado Gold and Roscan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerrado Gold position performs unexpectedly, Roscan 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 Roscan Gold will offset losses from the drop in Roscan Gold's long position.| Cerrado Gold vs. Antioquia Gold | Cerrado Gold vs. Red Pine Exploration | Cerrado Gold vs. Bellevue Gold Limited | Cerrado Gold vs. Asante Gold |
| Roscan Gold vs. Aurion Resources | Roscan Gold vs. Minera Alamos | Roscan Gold vs. Rio2 Limited | Roscan Gold vs. Kalo Gold Holdings |
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.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |