Correlation Between Emergent Metals and Chesapeake Gold
Can any of the company-specific risk be diversified away by investing in both Emergent Metals and Chesapeake 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 Emergent Metals and Chesapeake Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emergent Metals Corp and Chesapeake Gold Corp, you can compare the effects of market volatilities on Emergent Metals and Chesapeake 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 Emergent Metals with a short position of Chesapeake Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emergent Metals and Chesapeake Gold.
Diversification Opportunities for Emergent Metals and Chesapeake Gold
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emergent and Chesapeake is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Emergent Metals Corp and Chesapeake Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Gold Corp and Emergent Metals 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 Emergent Metals Corp are associated (or correlated) with Chesapeake Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Gold Corp has no effect on the direction of Emergent Metals i.e., Emergent Metals and Chesapeake Gold go up and down completely randomly.
Pair Corralation between Emergent Metals and Chesapeake Gold
Assuming the 90 days horizon Emergent Metals Corp is expected to generate 1.68 times more return on investment than Chesapeake Gold. However, Emergent Metals is 1.68 times more volatile than Chesapeake Gold Corp. It trades about 0.05 of its potential returns per unit of risk. Chesapeake Gold Corp is currently generating about -0.3 per unit of risk. If you would invest 11.00 in Emergent Metals Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Emergent Metals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emergent Metals Corp vs. Chesapeake Gold Corp
Performance |
| Timeline |
| Emergent Metals Corp |
| Chesapeake Gold Corp |
Emergent Metals and Chesapeake Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emergent Metals and Chesapeake Gold
The main advantage of trading using opposite Emergent Metals and Chesapeake Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emergent Metals position performs unexpectedly, Chesapeake 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 Chesapeake Gold will offset losses from the drop in Chesapeake Gold's long position.| Emergent Metals vs. Dynasty Gold Corp | Emergent Metals vs. Eastfield Resources | Emergent Metals vs. Conquest Resources | Emergent Metals vs. Goldcliff Resource Corp |
| Chesapeake Gold vs. Bear Creek Mining | Chesapeake Gold vs. Spanish Mountain Gold | Chesapeake Gold vs. Kore Mining | Chesapeake Gold vs. Kootenay Silver |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |