Correlation Between Gold Bull and Magna Gold
Can any of the company-specific risk be diversified away by investing in both Gold Bull and Magna 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 Gold Bull and Magna Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Bull Resources and Magna Gold Corp, you can compare the effects of market volatilities on Gold Bull and Magna 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 Gold Bull with a short position of Magna Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bull and Magna Gold.
Diversification Opportunities for Gold Bull and Magna Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gold and Magna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gold Bull Resources and Magna Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Gold Corp and Gold Bull 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 Gold Bull Resources are associated (or correlated) with Magna Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Gold Corp has no effect on the direction of Gold Bull i.e., Gold Bull and Magna Gold go up and down completely randomly.
Pair Corralation between Gold Bull and Magna Gold
If you would invest 0.80 in Magna Gold Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Magna Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Gold Bull Resources vs. Magna Gold Corp
Performance |
| Timeline |
| Gold Bull Resources |
| Magna Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gold Bull and Magna Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bull and Magna Gold
The main advantage of trading using opposite Gold Bull and Magna Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bull position performs unexpectedly, Magna 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 Magna Gold will offset losses from the drop in Magna Gold's long position.| Gold Bull vs. Aurion Resources | Gold Bull vs. Liberty Gold Corp | Gold Bull vs. Orezone Gold Corp | Gold Bull vs. Fortuna Silver Mines |
| Magna Gold vs. Robex Resources | Magna Gold vs. Rover Metals Corp | Magna Gold vs. Eloro Resources | Magna Gold vs. Orefinders Resources |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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