Correlation Between East Side and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both East Side and Alamos 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 East Side and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Side Games and Alamos Gold, you can compare the effects of market volatilities on East Side and Alamos 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 East Side with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Side and Alamos Gold.
Diversification Opportunities for East Side and Alamos Gold
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between East and Alamos is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding East Side Games and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and East Side 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 East Side Games are associated (or correlated) with Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of East Side i.e., East Side and Alamos Gold go up and down completely randomly.
Pair Corralation between East Side and Alamos Gold
Assuming the 90 days trading horizon East Side is expected to generate 1.18 times less return on investment than Alamos Gold. In addition to that, East Side is 2.7 times more volatile than Alamos Gold. It trades about 0.03 of its total potential returns per unit of risk. Alamos Gold is currently generating about 0.09 per unit of volatility. If you would invest 1,350 in Alamos Gold on September 14, 2024 and sell it today you would earn a total of 1,433 from holding Alamos Gold or generate 106.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Side Games vs. Alamos Gold
Performance |
| Timeline |
| East Side Games |
| Alamos Gold |
East Side and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Side and Alamos Gold
The main advantage of trading using opposite East Side and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Side position performs unexpectedly, Alamos 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.| East Side vs. Slate Grocery REIT | East Side vs. Roots Corp | East Side vs. Aimia Inc | East Side vs. Morguard Real Estate |
| Alamos Gold vs. Westshore Terminals Investment | Alamos Gold vs. Bird Construction | Alamos Gold vs. East Side Games | Alamos Gold vs. Upstart Investments |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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