Correlation Between Euro Manganese and Golden Goliath
Can any of the company-specific risk be diversified away by investing in both Euro Manganese and Golden Goliath 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 Euro Manganese and Golden Goliath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euro Manganese and Golden Goliath Resources, you can compare the effects of market volatilities on Euro Manganese and Golden Goliath 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 Euro Manganese with a short position of Golden Goliath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Manganese and Golden Goliath.
Diversification Opportunities for Euro Manganese and Golden Goliath
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Euro and Golden is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Euro Manganese and Golden Goliath Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Goliath Resources and Euro Manganese 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 Euro Manganese are associated (or correlated) with Golden Goliath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Goliath Resources has no effect on the direction of Euro Manganese i.e., Euro Manganese and Golden Goliath go up and down completely randomly.
Pair Corralation between Euro Manganese and Golden Goliath
Assuming the 90 days horizon Euro Manganese is expected to under-perform the Golden Goliath. But the otc stock apears to be less risky and, when comparing its historical volatility, Euro Manganese is 15.87 times less risky than Golden Goliath. The otc stock trades about -0.01 of its potential returns per unit of risk. The Golden Goliath Resources is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Golden Goliath Resources on August 26, 2024 and sell it today you would earn a total of 1.00 from holding Golden Goliath Resources or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.95% |
| Values | Daily Returns |
Euro Manganese vs. Golden Goliath Resources
Performance |
| Timeline |
| Euro Manganese |
| Golden Goliath Resources |
Euro Manganese and Golden Goliath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euro Manganese and Golden Goliath
The main advantage of trading using opposite Euro Manganese and Golden Goliath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euro Manganese position performs unexpectedly, Golden Goliath 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 Golden Goliath will offset losses from the drop in Golden Goliath's long position.| Euro Manganese vs. Bravada Gold | Euro Manganese vs. Silver Spruce Resources | Euro Manganese vs. Monitor Ventures | Euro Manganese vs. Pershing Resources |
| Golden Goliath vs. Silver Spruce Resources | Golden Goliath vs. Portofino Resources | Golden Goliath vs. Freegold Ventures Limited | Golden Goliath vs. Bravada 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |