Correlation Between EMX Royalty and Giyani Metals
Can any of the company-specific risk be diversified away by investing in both EMX Royalty and Giyani Metals 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 EMX Royalty and Giyani Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMX Royalty Corp and Giyani Metals Corp, you can compare the effects of market volatilities on EMX Royalty and Giyani Metals 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 EMX Royalty with a short position of Giyani Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMX Royalty and Giyani Metals.
Diversification Opportunities for EMX Royalty and Giyani Metals
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between EMX and Giyani is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and Giyani Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giyani Metals Corp and EMX Royalty 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 EMX Royalty Corp are associated (or correlated) with Giyani Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giyani Metals Corp has no effect on the direction of EMX Royalty i.e., EMX Royalty and Giyani Metals go up and down completely randomly.
Pair Corralation between EMX Royalty and Giyani Metals
Considering the 90-day investment horizon EMX Royalty is expected to generate 4.93 times less return on investment than Giyani Metals. But when comparing it to its historical volatility, EMX Royalty Corp is 3.27 times less risky than Giyani Metals. It trades about 0.02 of its potential returns per unit of risk. Giyani Metals Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Giyani Metals Corp on September 2, 2024 and sell it today you would lose (1.85) from holding Giyani Metals Corp or give up 20.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMX Royalty Corp vs. Giyani Metals Corp
Performance |
| Timeline |
| EMX Royalty Corp |
| Giyani Metals Corp |
EMX Royalty and Giyani Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMX Royalty and Giyani Metals
The main advantage of trading using opposite EMX Royalty and Giyani Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMX Royalty position performs unexpectedly, Giyani Metals 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 Giyani Metals will offset losses from the drop in Giyani Metals' long position.| EMX Royalty vs. Metalla Royalty Streaming | EMX Royalty vs. Osisko Gold Ro | EMX Royalty vs. Equinox Gold Corp | EMX Royalty vs. SilverCrest Metals |
| Giyani Metals vs. South32 Limited | Giyani Metals vs. NioCorp Developments Ltd | Giyani Metals vs. HUMANA INC | Giyani Metals vs. SCOR PK |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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