Correlation Between De Grey and Bellevue Gold
Can any of the company-specific risk be diversified away by investing in both De Grey and Bellevue 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 De Grey and Bellevue Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Grey Mining and Bellevue Gold, you can compare the effects of market volatilities on De Grey and Bellevue 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 De Grey with a short position of Bellevue Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Grey and Bellevue Gold.
Diversification Opportunities for De Grey and Bellevue Gold
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DEG and Bellevue is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding De Grey Mining and Bellevue Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Gold and De Grey 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 De Grey Mining are associated (or correlated) with Bellevue Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Gold has no effect on the direction of De Grey i.e., De Grey and Bellevue Gold go up and down completely randomly.
Pair Corralation between De Grey and Bellevue Gold
Assuming the 90 days trading horizon De Grey Mining is expected to generate 0.34 times more return on investment than Bellevue Gold. However, De Grey Mining is 2.98 times less risky than Bellevue Gold. It trades about 0.38 of its potential returns per unit of risk. Bellevue Gold is currently generating about 0.12 per unit of risk. If you would invest 179.00 in De Grey Mining on November 3, 2024 and sell it today you would earn a total of 22.00 from holding De Grey Mining or generate 12.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Grey Mining vs. Bellevue Gold
Performance |
| Timeline |
| De Grey Mining |
| Bellevue Gold |
De Grey and Bellevue Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Grey and Bellevue Gold
The main advantage of trading using opposite De Grey and Bellevue Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Grey position performs unexpectedly, Bellevue 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 Bellevue Gold will offset losses from the drop in Bellevue Gold's long position.| De Grey vs. Qbe Insurance Group | De Grey vs. Ras Technology Holdings | De Grey vs. Thorney Technologies | De Grey vs. Ambertech |
| Bellevue Gold vs. Hutchison Telecommunications | Bellevue Gold vs. ACDC Metals | Bellevue Gold vs. Falcon Metals | Bellevue Gold vs. Cleanaway Waste Management |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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