Correlation Between Galiano Gold and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Mayfair 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 Mayfair 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 Mayfair Gold Corp, you can compare the effects of market volatilities on Galiano Gold and Mayfair 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 Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Mayfair Gold.
Diversification Opportunities for Galiano Gold and Mayfair Gold
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galiano and Mayfair is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair 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 Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Galiano Gold i.e., Galiano Gold and Mayfair Gold go up and down completely randomly.
Pair Corralation between Galiano Gold and Mayfair Gold
Considering the 90-day investment horizon Galiano Gold is expected to under-perform the Mayfair Gold. In addition to that, Galiano Gold is 1.17 times more volatile than Mayfair Gold Corp. It trades about -0.02 of its total potential returns per unit of risk. Mayfair Gold Corp is currently generating about -0.01 per unit of volatility. If you would invest 127.00 in Mayfair Gold Corp on December 4, 2024 and sell it today you would lose (10.00) from holding Mayfair Gold Corp or give up 7.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Galiano Gold vs. Mayfair Gold Corp
Performance |
| Timeline |
| Galiano Gold |
| Mayfair Gold Corp |
Galiano Gold and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Mayfair Gold
The main advantage of trading using opposite Galiano Gold and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Mayfair 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 Mayfair Gold will offset losses from the drop in Mayfair 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 |
| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets |