Correlation Between Dundee Precious and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both Dundee Precious and Jaguar Mining 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 Dundee Precious and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dundee Precious Metals and Jaguar Mining, you can compare the effects of market volatilities on Dundee Precious and Jaguar Mining 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 Dundee Precious with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dundee Precious and Jaguar Mining.
Diversification Opportunities for Dundee Precious and Jaguar Mining
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dundee and Jaguar is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dundee Precious Metals and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and Dundee Precious 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 Dundee Precious Metals are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of Dundee Precious i.e., Dundee Precious and Jaguar Mining go up and down completely randomly.
Pair Corralation between Dundee Precious and Jaguar Mining
Assuming the 90 days trading horizon Dundee Precious is expected to generate 1.13 times less return on investment than Jaguar Mining. But when comparing it to its historical volatility, Dundee Precious Metals is 2.33 times less risky than Jaguar Mining. It trades about 0.24 of its potential returns per unit of risk. Jaguar Mining is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 235.00 in Jaguar Mining on November 4, 2024 and sell it today you would earn a total of 22.00 from holding Jaguar Mining or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dundee Precious Metals vs. Jaguar Mining
Performance |
| Timeline |
| Dundee Precious Metals |
| Jaguar Mining |
Dundee Precious and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dundee Precious and Jaguar Mining
The main advantage of trading using opposite Dundee Precious and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dundee Precious position performs unexpectedly, Jaguar Mining 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.| Dundee Precious vs. Centerra Gold | Dundee Precious vs. SSR Mining | Dundee Precious vs. Alamos Gold | Dundee Precious vs. Endeavour Mining Corp |
| Jaguar Mining vs. Wallbridge Mining | Jaguar Mining vs. Dundee Precious Metals | Jaguar Mining vs. International Tower Hill | Jaguar Mining vs. Centerra Gold |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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