Correlation Between Dakota Gold and Golden Star
Can any of the company-specific risk be diversified away by investing in both Dakota Gold and Golden Star 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 Dakota Gold and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dakota Gold Corp and Golden Star Resource, you can compare the effects of market volatilities on Dakota Gold and Golden Star 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 Dakota Gold with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dakota Gold and Golden Star.
Diversification Opportunities for Dakota Gold and Golden Star
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dakota and Golden is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dakota Gold Corp and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource and Dakota 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 Dakota Gold Corp are associated (or correlated) with Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Resource has no effect on the direction of Dakota Gold i.e., Dakota Gold and Golden Star go up and down completely randomly.
Pair Corralation between Dakota Gold and Golden Star
Allowing for the 90-day total investment horizon Dakota Gold Corp is expected to under-perform the Golden Star. In addition to that, Dakota Gold is 1.65 times more volatile than Golden Star Resource. It trades about -0.03 of its total potential returns per unit of risk. Golden Star Resource is currently generating about 0.13 per unit of volatility. If you would invest 100.00 in Golden Star Resource on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Golden Star Resource or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Dakota Gold Corp vs. Golden Star Resource
Performance |
| Timeline |
| Dakota Gold Corp |
| Golden Star Resource |
Dakota Gold and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dakota Gold and Golden Star
The main advantage of trading using opposite Dakota Gold and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dakota Gold position performs unexpectedly, Golden Star 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 Star will offset losses from the drop in Golden Star's long position.| Dakota Gold vs. Osisko Development Corp | Dakota Gold vs. Osisko Development Corp | Dakota Gold vs. Gold Royalty Corp | Dakota Gold vs. Carbon Streaming Corp |
| Golden Star vs. China Aircraft Leasing | Golden Star vs. NetSol Technologies | Golden Star vs. Zhihu Inc ADR | Golden Star vs. Q2 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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