Correlation Between Equinox Gold and Artemis Gold
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Artemis 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 Artemis 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 Artemis Gold, you can compare the effects of market volatilities on Equinox Gold and Artemis 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 Artemis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Artemis Gold.
Diversification Opportunities for Equinox Gold and Artemis Gold
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Equinox and Artemis is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Artemis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Gold 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 Artemis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Gold has no effect on the direction of Equinox Gold i.e., Equinox Gold and Artemis Gold go up and down completely randomly.
Pair Corralation between Equinox Gold and Artemis Gold
Assuming the 90 days trading horizon Equinox Gold is expected to generate 2.04 times less return on investment than Artemis Gold. In addition to that, Equinox Gold is 1.08 times more volatile than Artemis Gold. It trades about 0.04 of its total potential returns per unit of risk. Artemis Gold is currently generating about 0.1 per unit of volatility. If you would invest 419.00 in Artemis Gold on August 29, 2024 and sell it today you would earn a total of 996.00 from holding Artemis Gold or generate 237.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. Artemis Gold
Performance |
| Timeline |
| Equinox Gold Corp |
| Artemis Gold |
Equinox Gold and Artemis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Artemis Gold
The main advantage of trading using opposite Equinox Gold and Artemis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Artemis 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 Artemis Gold will offset losses from the drop in Artemis 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 |
| Artemis Gold vs. Liberty Gold Corp | Artemis Gold vs. Osisko Development Corp | Artemis Gold vs. Ascot Resources | Artemis Gold vs. Equinox Gold 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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