Correlation Between Galiano Gold and Newcore Gold
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Newcore 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 Newcore 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 Newcore Gold, you can compare the effects of market volatilities on Galiano Gold and Newcore 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 Newcore Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Newcore Gold.
Diversification Opportunities for Galiano Gold and Newcore Gold
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galiano and Newcore is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Newcore Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcore 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 Newcore Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcore Gold has no effect on the direction of Galiano Gold i.e., Galiano Gold and Newcore Gold go up and down completely randomly.
Pair Corralation between Galiano Gold and Newcore Gold
Considering the 90-day investment horizon Galiano Gold is expected to under-perform the Newcore Gold. But the stock apears to be less risky and, when comparing its historical volatility, Galiano Gold is 1.01 times less risky than Newcore Gold. The stock trades about -0.23 of its potential returns per unit of risk. The Newcore Gold is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Newcore Gold on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Newcore Gold or generate 0.0% 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. Newcore Gold
Performance |
| Timeline |
| Galiano Gold |
| Newcore Gold |
Galiano Gold and Newcore Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Newcore Gold
The main advantage of trading using opposite Galiano Gold and Newcore Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Newcore 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 Newcore Gold will offset losses from the drop in Newcore 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 |
| Newcore Gold vs. Norsemont Mining | Newcore Gold vs. Cerrado Gold | Newcore Gold vs. Vior Inc | Newcore Gold vs. Peloton Minerals |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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