Correlation Between Deluxe and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Deluxe and Mayfair 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 Deluxe and Mayfair Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deluxe and Mayfair Gold Corp, you can compare the effects of market volatilities on Deluxe and Mayfair 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 Deluxe with a short position of Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deluxe and Mayfair Gold.
Diversification Opportunities for Deluxe and Mayfair Gold
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deluxe and Mayfair is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Deluxe and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp and Deluxe 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 Deluxe are associated (or correlated) with Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Deluxe i.e., Deluxe and Mayfair Gold go up and down completely randomly.
Pair Corralation between Deluxe and Mayfair Gold
Considering the 90-day investment horizon Deluxe is expected to generate 0.89 times more return on investment than Mayfair Gold. However, Deluxe is 1.13 times less risky than Mayfair Gold. It trades about 0.05 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about 0.03 per unit of risk. If you would invest 1,492 in Deluxe on September 12, 2024 and sell it today you would earn a total of 866.00 from holding Deluxe or generate 58.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Deluxe vs. Mayfair Gold Corp
Performance |
| Timeline |
| Deluxe |
| Mayfair Gold Corp |
Deluxe and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deluxe and Mayfair Gold
The main advantage of trading using opposite Deluxe and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deluxe position performs unexpectedly, Mayfair 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| Deluxe vs. Criteo Sa | Deluxe vs. Emerald Expositions Events | Deluxe vs. Marchex | Deluxe vs. Integral Ad Science |
| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |