Correlation Between Gold Bull and Maritime Resources
Can any of the company-specific risk be diversified away by investing in both Gold Bull and Maritime Resources 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 Maritime Resources 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 Maritime Resources Corp, you can compare the effects of market volatilities on Gold Bull and Maritime Resources 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 Maritime Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bull and Maritime Resources.
Diversification Opportunities for Gold Bull and Maritime Resources
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gold and Maritime is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Gold Bull Resources and Maritime Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maritime Resources 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 Maritime Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maritime Resources Corp has no effect on the direction of Gold Bull i.e., Gold Bull and Maritime Resources go up and down completely randomly.
Pair Corralation between Gold Bull and Maritime Resources
Assuming the 90 days horizon Gold Bull is expected to generate 114.86 times less return on investment than Maritime Resources. But when comparing it to its historical volatility, Gold Bull Resources is 2.5 times less risky than Maritime Resources. It trades about 0.0 of its potential returns per unit of risk. Maritime Resources Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Maritime Resources Corp on September 2, 2024 and sell it today you would earn a total of 0.50 from holding Maritime Resources Corp or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Bull Resources vs. Maritime Resources Corp
Performance |
| Timeline |
| Gold Bull Resources |
| Maritime Resources Corp |
Gold Bull and Maritime Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bull and Maritime Resources
The main advantage of trading using opposite Gold Bull and Maritime Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bull position performs unexpectedly, Maritime Resources 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 Maritime Resources will offset losses from the drop in Maritime Resources' long position.| Gold Bull vs. Robex Resources | Gold Bull vs. Orefinders Resources | Gold Bull vs. Leviathan Gold | Gold Bull vs. Rover Metals Corp |
| Maritime Resources vs. Aurion Resources | Maritime Resources vs. Rio2 Limited | Maritime Resources vs. Palamina Corp | Maritime Resources vs. Grande Portage 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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