Correlation Between Galiano Gold and Altamira Gold
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Altamira 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 Altamira 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 Altamira Gold Corp, you can compare the effects of market volatilities on Galiano Gold and Altamira 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 Altamira Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Altamira Gold.
Diversification Opportunities for Galiano Gold and Altamira Gold
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galiano and Altamira is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Altamira Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamira Gold Corp 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 Altamira Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamira Gold Corp has no effect on the direction of Galiano Gold i.e., Galiano Gold and Altamira Gold go up and down completely randomly.
Pair Corralation between Galiano Gold and Altamira Gold
Considering the 90-day investment horizon Galiano Gold is expected to generate 0.6 times more return on investment than Altamira Gold. However, Galiano Gold is 1.67 times less risky than Altamira Gold. It trades about 0.07 of its potential returns per unit of risk. Altamira Gold Corp is currently generating about 0.0 per unit of risk. If you would invest 53.00 in Galiano Gold on September 14, 2024 and sell it today you would earn a total of 78.00 from holding Galiano Gold or generate 147.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galiano Gold vs. Altamira Gold Corp
Performance |
| Timeline |
| Galiano Gold |
| Altamira Gold Corp |
Galiano Gold and Altamira Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Altamira Gold
The main advantage of trading using opposite Galiano Gold and Altamira Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Altamira 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 Altamira Gold will offset losses from the drop in Altamira 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 |
| Altamira Gold vs. Revival Gold | Altamira Gold vs. Galiano Gold | Altamira Gold vs. US Gold Corp | Altamira Gold vs. HUMANA INC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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