Correlation Between Eloro Resources and Altamira Gold
Can any of the company-specific risk be diversified away by investing in both Eloro Resources and Altamira 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 Eloro Resources and Altamira Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eloro Resources and Altamira Gold Corp, you can compare the effects of market volatilities on Eloro Resources and Altamira 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 Eloro Resources with a short position of Altamira Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eloro Resources and Altamira Gold.
Diversification Opportunities for Eloro Resources and Altamira Gold
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eloro and Altamira is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eloro Resources and Altamira Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamira Gold Corp and Eloro Resources 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 Eloro Resources are associated (or correlated) with Altamira Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamira Gold Corp has no effect on the direction of Eloro Resources i.e., Eloro Resources and Altamira Gold go up and down completely randomly.
Pair Corralation between Eloro Resources and Altamira Gold
Assuming the 90 days horizon Eloro Resources is expected to generate 0.55 times more return on investment than Altamira Gold. However, Eloro Resources is 1.81 times less risky than Altamira Gold. It trades about 0.28 of its potential returns per unit of risk. Altamira Gold Corp is currently generating about 0.1 per unit of risk. If you would invest 60.00 in Eloro Resources on October 23, 2024 and sell it today you would earn a total of 7.00 from holding Eloro Resources or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eloro Resources vs. Altamira Gold Corp
Performance |
| Timeline |
| Eloro Resources |
| Altamira Gold Corp |
Eloro Resources and Altamira Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eloro Resources and Altamira Gold
The main advantage of trading using opposite Eloro Resources and Altamira Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eloro Resources position performs unexpectedly, Altamira 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 Altamira Gold will offset losses from the drop in Altamira Gold's long position.| Eloro Resources vs. Labrador Gold Corp | Eloro Resources vs. Lion One Metals | Eloro Resources vs. Novo Resources Corp | Eloro Resources vs. Irving Resources |
| Altamira Gold vs. Endurance Gold | Altamira Gold vs. Red Pine Exploration | Altamira Gold vs. Grande Portage Resources | Altamira Gold vs. Tectonic Metals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |