Correlation Between Galantas Gold and IAMGold
Can any of the company-specific risk be diversified away by investing in both Galantas Gold and IAMGold 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 IAMGold 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 IAMGold, you can compare the effects of market volatilities on Galantas Gold and IAMGold 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 IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galantas Gold and IAMGold.
Diversification Opportunities for Galantas Gold and IAMGold
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Galantas and IAMGold is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Galantas Gold Corp and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold 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 IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of Galantas Gold i.e., Galantas Gold and IAMGold go up and down completely randomly.
Pair Corralation between Galantas Gold and IAMGold
Assuming the 90 days horizon Galantas Gold Corp is expected to under-perform the IAMGold. In addition to that, Galantas Gold is 2.52 times more volatile than IAMGold. It trades about -0.01 of its total potential returns per unit of risk. IAMGold is currently generating about 0.09 per unit of volatility. If you would invest 414.00 in IAMGold on December 2, 2024 and sell it today you would earn a total of 383.00 from holding IAMGold or generate 92.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Galantas Gold Corp vs. IAMGold
Performance |
| Timeline |
| Galantas Gold Corp |
| IAMGold |
Galantas Gold and IAMGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galantas Gold and IAMGold
The main advantage of trading using opposite Galantas Gold and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galantas Gold position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.| Galantas Gold vs. Grande Portage Resources | Galantas Gold vs. Stelmine Canada | Galantas Gold vs. Endurance Gold Corp | Galantas Gold vs. Dynasty Gold Corp |
| IAMGold vs. Eldorado Gold Corp | IAMGold vs. Kinross Gold Corp | IAMGold vs. Alamos Gold | IAMGold vs. New 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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