Correlation Between C2C Gold and Advance Gold
Can any of the company-specific risk be diversified away by investing in both C2C Gold and Advance 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 C2C Gold and Advance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C2C Gold Corp and Advance Gold Corp, you can compare the effects of market volatilities on C2C Gold and Advance 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 C2C Gold with a short position of Advance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of C2C Gold and Advance Gold.
Diversification Opportunities for C2C Gold and Advance Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between C2C and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding C2C Gold Corp and Advance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Gold Corp and C2C 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 C2C Gold Corp are associated (or correlated) with Advance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Gold Corp has no effect on the direction of C2C Gold i.e., C2C Gold and Advance Gold go up and down completely randomly.
Pair Corralation between C2C Gold and Advance Gold
Assuming the 90 days horizon C2C Gold Corp is expected to generate 3.57 times more return on investment than Advance Gold. However, C2C Gold is 3.57 times more volatile than Advance Gold Corp. It trades about 0.07 of its potential returns per unit of risk. Advance Gold Corp is currently generating about -0.09 per unit of risk. If you would invest 3.40 in C2C Gold Corp on August 26, 2024 and sell it today you would earn a total of 3.46 from holding C2C Gold Corp or generate 101.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
C2C Gold Corp vs. Advance Gold Corp
Performance |
| Timeline |
| C2C Gold Corp |
| Advance Gold Corp |
C2C Gold and Advance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C2C Gold and Advance Gold
The main advantage of trading using opposite C2C Gold and Advance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C2C Gold position performs unexpectedly, Advance 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 Advance Gold will offset losses from the drop in Advance Gold's long position.| C2C Gold vs. Antioquia Gold | C2C Gold vs. Condor Gold Plc | C2C Gold vs. Asante Gold | C2C Gold vs. Dynacor Gold Mines |
| Advance Gold vs. Aurion Resources | Advance Gold vs. Liberty Gold Corp | Advance Gold vs. Orezone Gold Corp | Advance Gold vs. Radisson Mining 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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