Correlation Between Equinox Gold and Aris Gold
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Aris 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 Equinox Gold and Aris Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinox Gold Corp and Aris Gold Corp, you can compare the effects of market volatilities on Equinox Gold and Aris 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 Equinox Gold with a short position of Aris Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Aris Gold.
Diversification Opportunities for Equinox Gold and Aris Gold
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Equinox and Aris is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Aris Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aris Gold Corp and Equinox 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 Equinox Gold Corp are associated (or correlated) with Aris Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aris Gold Corp has no effect on the direction of Equinox Gold i.e., Equinox Gold and Aris Gold go up and down completely randomly.
Pair Corralation between Equinox Gold and Aris Gold
Assuming the 90 days trading horizon Equinox Gold Corp is expected to generate 1.41 times more return on investment than Aris Gold. However, Equinox Gold is 1.41 times more volatile than Aris Gold Corp. It trades about 0.19 of its potential returns per unit of risk. Aris Gold Corp is currently generating about 0.06 per unit of risk. If you would invest 766.00 in Equinox Gold Corp on November 3, 2024 and sell it today you would earn a total of 111.00 from holding Equinox Gold Corp or generate 14.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. Aris Gold Corp
Performance |
| Timeline |
| Equinox Gold Corp |
| Aris Gold Corp |
Equinox Gold and Aris Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Aris Gold
The main advantage of trading using opposite Equinox Gold and Aris Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Aris 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 Aris Gold will offset losses from the drop in Aris Gold's long position.| Equinox Gold vs. Sandstorm Gold Ltd | Equinox Gold vs. Pan American Silver | Equinox Gold vs. SSR Mining | Equinox Gold vs. SilverCrest Metals |
| Aris Gold vs. Calibre Mining Corp | Aris Gold vs. K92 Mining | Aris Gold vs. Equinox Gold Corp | Aris Gold vs. New Found Gold |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |