Correlation Between GOLD ROAD and Takkt AG
Can any of the company-specific risk be diversified away by investing in both GOLD ROAD and Takkt AG 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 GOLD ROAD and Takkt AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOLD ROAD RES and Takkt AG, you can compare the effects of market volatilities on GOLD ROAD and Takkt AG 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 GOLD ROAD with a short position of Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLD ROAD and Takkt AG.
Diversification Opportunities for GOLD ROAD and Takkt AG
Very good diversification
The 3 months correlation between GOLD and Takkt is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding GOLD ROAD RES and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG and GOLD ROAD 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 GOLD ROAD RES are associated (or correlated) with Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of GOLD ROAD i.e., GOLD ROAD and Takkt AG go up and down completely randomly.
Pair Corralation between GOLD ROAD and Takkt AG
Assuming the 90 days trading horizon GOLD ROAD RES is expected to generate 1.38 times more return on investment than Takkt AG. However, GOLD ROAD is 1.38 times more volatile than Takkt AG. It trades about 0.04 of its potential returns per unit of risk. Takkt AG is currently generating about -0.07 per unit of risk. If you would invest 105.00 in GOLD ROAD RES on September 14, 2024 and sell it today you would earn a total of 25.00 from holding GOLD ROAD RES or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
GOLD ROAD RES vs. Takkt AG
Performance |
| Timeline |
| GOLD ROAD RES |
| Takkt AG |
GOLD ROAD and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLD ROAD and Takkt AG
The main advantage of trading using opposite GOLD ROAD and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLD ROAD position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.The idea behind GOLD ROAD RES and Takkt AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Takkt AG vs. FUJIFILM Holdings | Takkt AG vs. Avery Dennison Corp | Takkt AG vs. Konica Minolta | Takkt AG vs. KOKUYO 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |