Correlation Between Galiano Gold and Allegiant Gold
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Allegiant Gold 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 Galiano Gold and Allegiant Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galiano Gold and Allegiant Gold, you can compare the effects of market volatilities on Galiano Gold and Allegiant Gold 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 Galiano Gold with a short position of Allegiant Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Allegiant Gold.
Diversification Opportunities for Galiano Gold and Allegiant Gold
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Galiano and Allegiant is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Allegiant Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Gold and Galiano 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 Galiano Gold are associated (or correlated) with Allegiant Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Gold has no effect on the direction of Galiano Gold i.e., Galiano Gold and Allegiant Gold go up and down completely randomly.
Pair Corralation between Galiano Gold and Allegiant Gold
Considering the 90-day investment horizon Galiano Gold is expected to generate 0.34 times more return on investment than Allegiant Gold. However, Galiano Gold is 2.94 times less risky than Allegiant Gold. It trades about 0.13 of its potential returns per unit of risk. Allegiant Gold is currently generating about -0.06 per unit of risk. If you would invest 114.00 in Galiano Gold on November 28, 2024 and sell it today you would earn a total of 8.00 from holding Galiano Gold or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galiano Gold vs. Allegiant Gold
Performance |
| Timeline |
| Galiano Gold |
| Allegiant Gold |
Galiano Gold and Allegiant Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Allegiant Gold
The main advantage of trading using opposite Galiano Gold and Allegiant Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Allegiant Gold 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 Allegiant Gold will offset losses from the drop in Allegiant Gold's long position.| Galiano Gold vs. Avino Silver Gold | Galiano Gold vs. Americas Silver Corp | Galiano Gold vs. Paramount Gold Nevada | Galiano Gold vs. Fury Gold Mines |
| Allegiant Gold vs. Minnova Corp | Allegiant Gold vs. Argo Gold | Allegiant Gold vs. Advance Gold Corp | Allegiant Gold vs. Blue Star 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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