Correlation Between Galantas Gold and Asiabasemetals
Can any of the company-specific risk be diversified away by investing in both Galantas Gold and Asiabasemetals 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 Galantas Gold and Asiabasemetals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galantas Gold Corp and Asiabasemetals, you can compare the effects of market volatilities on Galantas Gold and Asiabasemetals 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 Galantas Gold with a short position of Asiabasemetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galantas Gold and Asiabasemetals.
Diversification Opportunities for Galantas Gold and Asiabasemetals
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Galantas and Asiabasemetals is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Galantas Gold Corp and Asiabasemetals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiabasemetals and Galantas 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 Galantas Gold Corp are associated (or correlated) with Asiabasemetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiabasemetals has no effect on the direction of Galantas Gold i.e., Galantas Gold and Asiabasemetals go up and down completely randomly.
Pair Corralation between Galantas Gold and Asiabasemetals
Assuming the 90 days horizon Galantas Gold Corp is expected to under-perform the Asiabasemetals. But the stock apears to be less risky and, when comparing its historical volatility, Galantas Gold Corp is 2.65 times less risky than Asiabasemetals. The stock trades about -0.25 of its potential returns per unit of risk. The Asiabasemetals is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Asiabasemetals on September 12, 2024 and sell it today you would lose (2.00) from holding Asiabasemetals or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galantas Gold Corp vs. Asiabasemetals
Performance |
| Timeline |
| Galantas Gold Corp |
| Asiabasemetals |
Galantas Gold and Asiabasemetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galantas Gold and Asiabasemetals
The main advantage of trading using opposite Galantas Gold and Asiabasemetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galantas Gold position performs unexpectedly, Asiabasemetals 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 Asiabasemetals will offset losses from the drop in Asiabasemetals' long position.| Galantas Gold vs. Ressources Minieres Radisson | Galantas Gold vs. Red Pine Exploration | Galantas Gold vs. Kore Mining |
| Asiabasemetals vs. Ressources Minieres Radisson | Asiabasemetals vs. Galantas Gold Corp | Asiabasemetals vs. Red Pine Exploration | Asiabasemetals vs. Kore Mining |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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