Correlation Between Altamira Gold and Cabral Gold
Can any of the company-specific risk be diversified away by investing in both Altamira Gold and Cabral 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 Altamira Gold and Cabral Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamira Gold Corp and Cabral Gold, you can compare the effects of market volatilities on Altamira Gold and Cabral 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 Altamira Gold with a short position of Cabral Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamira Gold and Cabral Gold.
Diversification Opportunities for Altamira Gold and Cabral Gold
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altamira and Cabral is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Altamira Gold Corp and Cabral Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabral Gold and Altamira Gold 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 Altamira Gold Corp are associated (or correlated) with Cabral Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabral Gold has no effect on the direction of Altamira Gold i.e., Altamira Gold and Cabral Gold go up and down completely randomly.
Pair Corralation between Altamira Gold and Cabral Gold
Assuming the 90 days horizon Altamira Gold is expected to generate 24.76 times less return on investment than Cabral Gold. But when comparing it to its historical volatility, Altamira Gold Corp is 1.39 times less risky than Cabral Gold. It trades about 0.0 of its potential returns per unit of risk. Cabral Gold is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8.30 in Cabral Gold on September 2, 2024 and sell it today you would earn a total of 9.70 from holding Cabral Gold or generate 116.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altamira Gold Corp vs. Cabral Gold
Performance |
| Timeline |
| Altamira Gold Corp |
| Cabral Gold |
Altamira Gold and Cabral Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamira Gold and Cabral Gold
The main advantage of trading using opposite Altamira Gold and Cabral Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamira Gold position performs unexpectedly, Cabral 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 Cabral Gold will offset losses from the drop in Cabral Gold's long position.| Altamira Gold vs. Aurion Resources | Altamira Gold vs. Rio2 Limited | Altamira Gold vs. Palamina Corp | Altamira Gold vs. BTU Metals Corp |
| Cabral Gold vs. Aurion Resources | Cabral Gold vs. Rio2 Limited | Cabral Gold vs. Palamina Corp | Cabral Gold vs. BTU Metals Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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