Correlation Between Group 6 and Gold Road
Can any of the company-specific risk be diversified away by investing in both Group 6 and Gold Road 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 Group 6 and Gold Road into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group 6 Metals and Gold Road Resources, you can compare the effects of market volatilities on Group 6 and Gold Road 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 Group 6 with a short position of Gold Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group 6 and Gold Road.
Diversification Opportunities for Group 6 and Gold Road
Weak diversification
The 3 months correlation between Group and Gold is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Group 6 Metals and Gold Road Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Road Resources and Group 6 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 Group 6 Metals are associated (or correlated) with Gold Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Road Resources has no effect on the direction of Group 6 i.e., Group 6 and Gold Road go up and down completely randomly.
Pair Corralation between Group 6 and Gold Road
If you would invest 177.00 in Gold Road Resources on September 13, 2024 and sell it today you would earn a total of 38.00 from holding Gold Road Resources or generate 21.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Group 6 Metals vs. Gold Road Resources
Performance |
| Timeline |
| Group 6 Metals |
| Gold Road Resources |
Group 6 and Gold Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group 6 and Gold Road
The main advantage of trading using opposite Group 6 and Gold Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group 6 position performs unexpectedly, Gold Road 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 Gold Road will offset losses from the drop in Gold Road's long position.| Group 6 vs. Perpetual Credit Income | Group 6 vs. Wt Financial Group | Group 6 vs. Hotel Property Investments | Group 6 vs. Bell Financial Group |
| Gold Road vs. Ras Technology Holdings | Gold Road vs. Srj Technologies Group | Gold Road vs. Richmond Vanadium Technology | Gold Road vs. G8 Education |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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