Correlation Between Equinox Gold and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Cassiar 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 Cassiar 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 Cassiar Gold Corp, you can compare the effects of market volatilities on Equinox Gold and Cassiar 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 Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Cassiar Gold.
Diversification Opportunities for Equinox Gold and Cassiar Gold
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Equinox and Cassiar is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar 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 Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Equinox Gold i.e., Equinox Gold and Cassiar Gold go up and down completely randomly.
Pair Corralation between Equinox Gold and Cassiar Gold
Considering the 90-day investment horizon Equinox Gold Corp is expected to generate 0.63 times more return on investment than Cassiar Gold. However, Equinox Gold Corp is 1.58 times less risky than Cassiar Gold. It trades about 0.03 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about 0.01 per unit of risk. If you would invest 484.00 in Equinox Gold Corp on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Equinox Gold Corp or generate 16.74% 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. Cassiar Gold Corp
Performance |
| Timeline |
| Equinox Gold Corp |
| Cassiar Gold Corp |
Equinox Gold and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Cassiar Gold
The main advantage of trading using opposite Equinox Gold and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Equinox Gold vs. Fortitude Gold Corp | Equinox Gold vs. New Gold | Equinox Gold vs. Galiano Gold | Equinox Gold vs. GoldMining |
| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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