Correlation Between Galiano Gold and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Wheaton Precious 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 Wheaton Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galiano Gold and Wheaton Precious Metals, you can compare the effects of market volatilities on Galiano Gold and Wheaton Precious 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 Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Wheaton Precious.
Diversification Opportunities for Galiano Gold and Wheaton Precious
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Galiano and Wheaton is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals 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 Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of Galiano Gold i.e., Galiano Gold and Wheaton Precious go up and down completely randomly.
Pair Corralation between Galiano Gold and Wheaton Precious
Considering the 90-day investment horizon Galiano Gold is expected to generate 1.97 times more return on investment than Wheaton Precious. However, Galiano Gold is 1.97 times more volatile than Wheaton Precious Metals. It trades about 0.07 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about 0.07 per unit of risk. If you would invest 57.00 in Galiano Gold on August 25, 2024 and sell it today you would earn a total of 92.00 from holding Galiano Gold or generate 161.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galiano Gold vs. Wheaton Precious Metals
Performance |
| Timeline |
| Galiano Gold |
| Wheaton Precious Metals |
Galiano Gold and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Wheaton Precious
The main advantage of trading using opposite Galiano Gold and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' 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 |
| Wheaton Precious vs. Fortitude Gold Corp | Wheaton Precious vs. Galiano Gold | Wheaton Precious vs. GoldMining |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |