Correlation Between Gold Road and Continental
Can any of the company-specific risk be diversified away by investing in both Gold Road and Continental 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 Continental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and Camden Property Trust, you can compare the effects of market volatilities on Gold Road and Continental 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 Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and Continental.
Diversification Opportunities for Gold Road and Continental
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gold and Continental is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust 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 Resources are associated (or correlated) with Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of Gold Road i.e., Gold Road and Continental go up and down completely randomly.
Pair Corralation between Gold Road and Continental
Assuming the 90 days horizon Gold Road Resources is expected to generate 1.01 times more return on investment than Continental. However, Gold Road is 1.01 times more volatile than Camden Property Trust. It trades about -0.14 of its potential returns per unit of risk. Camden Property Trust is currently generating about -0.27 per unit of risk. If you would invest 130.00 in Gold Road Resources on October 11, 2024 and sell it today you would lose (5.00) from holding Gold Road Resources or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Road Resources vs. Camden Property Trust
Performance |
| Timeline |
| Gold Road Resources |
| Camden Property Trust |
Gold Road and Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Road and Continental
The main advantage of trading using opposite Gold Road and Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road position performs unexpectedly, Continental 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 Continental will offset losses from the drop in Continental's long position.| Gold Road vs. ELECTRONIC ARTS | Gold Road vs. Waste Management | Gold Road vs. CeoTronics AG | Gold Road vs. AGF Management Limited |
| Continental vs. MARKET VECTR RETAIL | Continental vs. Costco Wholesale Corp | Continental vs. COSTCO WHOLESALE CDR | Continental vs. Gold Road Resources |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |