Correlation Between Empire State and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Empire State 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 Empire State and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Cassiar Gold Corp, you can compare the effects of market volatilities on Empire State 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 Empire State with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Cassiar Gold.
Diversification Opportunities for Empire State and Cassiar Gold
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Empire and Cassiar is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty 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 Empire State 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 Empire State Realty 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 Empire State i.e., Empire State and Cassiar Gold go up and down completely randomly.
Pair Corralation between Empire State and Cassiar Gold
Given the investment horizon of 90 days Empire State Realty is expected to generate 0.26 times more return on investment than Cassiar Gold. However, Empire State Realty is 3.88 times less risky than Cassiar Gold. It trades about 0.13 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.03 per unit of risk. If you would invest 1,060 in Empire State Realty on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Empire State Realty or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empire State Realty vs. Cassiar Gold Corp
Performance |
| Timeline |
| Empire State Realty |
| Cassiar Gold Corp |
Empire State and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Cassiar Gold
The main advantage of trading using opposite Empire State and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State 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.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |