Correlation Between Decade Resources and GoldHaven Resources
Can any of the company-specific risk be diversified away by investing in both Decade Resources and GoldHaven Resources 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 Decade Resources and GoldHaven Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Decade Resources and GoldHaven Resources Corp, you can compare the effects of market volatilities on Decade Resources and GoldHaven Resources 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 Decade Resources with a short position of GoldHaven Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Decade Resources and GoldHaven Resources.
Diversification Opportunities for Decade Resources and GoldHaven Resources
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Decade and GoldHaven is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Decade Resources and GoldHaven Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldHaven Resources Corp and Decade 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 Decade Resources are associated (or correlated) with GoldHaven Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldHaven Resources Corp has no effect on the direction of Decade Resources i.e., Decade Resources and GoldHaven Resources go up and down completely randomly.
Pair Corralation between Decade Resources and GoldHaven Resources
Assuming the 90 days horizon Decade Resources is expected to generate 2.67 times less return on investment than GoldHaven Resources. But when comparing it to its historical volatility, Decade Resources is 2.02 times less risky than GoldHaven Resources. It trades about 0.05 of its potential returns per unit of risk. GoldHaven Resources Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 42.00 in GoldHaven Resources Corp on September 1, 2024 and sell it today you would lose (31.00) from holding GoldHaven Resources Corp or give up 73.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Decade Resources vs. GoldHaven Resources Corp
Performance |
| Timeline |
| Decade Resources |
| GoldHaven Resources Corp |
Decade Resources and GoldHaven Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Decade Resources and GoldHaven Resources
The main advantage of trading using opposite Decade Resources and GoldHaven Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Decade Resources position performs unexpectedly, GoldHaven Resources 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 GoldHaven Resources will offset losses from the drop in GoldHaven Resources' long position.| Decade Resources vs. First American Silver | Decade Resources vs. Australian Vanadium Limited | Decade Resources vs. International Lithium Corp | Decade Resources vs. Wealth Minerals |
| GoldHaven Resources vs. ATT Inc | GoldHaven Resources vs. Merck Company | GoldHaven Resources vs. Walt Disney | GoldHaven Resources vs. Caterpillar |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |