Correlation Between Galiano Gold and Worthington Steel
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Worthington Steel 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 Worthington Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galiano Gold and Worthington Steel, you can compare the effects of market volatilities on Galiano Gold and Worthington Steel 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 Worthington Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Worthington Steel.
Diversification Opportunities for Galiano Gold and Worthington Steel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galiano and Worthington is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Worthington Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worthington Steel 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 Worthington Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worthington Steel has no effect on the direction of Galiano Gold i.e., Galiano Gold and Worthington Steel go up and down completely randomly.
Pair Corralation between Galiano Gold and Worthington Steel
Considering the 90-day investment horizon Galiano Gold is expected to generate 9.29 times less return on investment than Worthington Steel. In addition to that, Galiano Gold is 1.0 times more volatile than Worthington Steel. It trades about 0.02 of its total potential returns per unit of risk. Worthington Steel is currently generating about 0.18 per unit of volatility. If you would invest 3,207 in Worthington Steel on September 3, 2024 and sell it today you would earn a total of 1,277 from holding Worthington Steel or generate 39.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galiano Gold vs. Worthington Steel
Performance |
| Timeline |
| Galiano Gold |
| Worthington Steel |
Galiano Gold and Worthington Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Worthington Steel
The main advantage of trading using opposite Galiano Gold and Worthington Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Worthington Steel 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 Worthington Steel will offset losses from the drop in Worthington Steel'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 |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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