Correlation Between Galantas Gold and Starcore International
Can any of the company-specific risk be diversified away by investing in both Galantas Gold and Starcore International 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 Starcore International 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 Starcore International Mines, you can compare the effects of market volatilities on Galantas Gold and Starcore International 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 Starcore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galantas Gold and Starcore International.
Diversification Opportunities for Galantas Gold and Starcore International
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galantas and Starcore is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Galantas Gold Corp and Starcore International Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starcore International 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 Starcore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starcore International has no effect on the direction of Galantas Gold i.e., Galantas Gold and Starcore International go up and down completely randomly.
Pair Corralation between Galantas Gold and Starcore International
Assuming the 90 days horizon Galantas Gold Corp is expected to under-perform the Starcore International. But the stock apears to be less risky and, when comparing its historical volatility, Galantas Gold Corp is 1.27 times less risky than Starcore International. The stock trades about -0.18 of its potential returns per unit of risk. The Starcore International Mines is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Starcore International Mines on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Starcore International Mines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galantas Gold Corp vs. Starcore International Mines
Performance |
| Timeline |
| Galantas Gold Corp |
| Starcore International |
Galantas Gold and Starcore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galantas Gold and Starcore International
The main advantage of trading using opposite Galantas Gold and Starcore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galantas Gold position performs unexpectedly, Starcore International 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 Starcore International will offset losses from the drop in Starcore International's long position.| Galantas Gold vs. First Majestic Silver | Galantas Gold vs. Ivanhoe Energy | Galantas Gold vs. Orezone Gold Corp |
| Starcore International vs. Kiplin Metals | Starcore International vs. Noram Lithium Corp | Starcore International vs. Minnova Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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