Correlation Between Gold Reserve and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both Gold Reserve and Antioquia 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 Reserve and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Reserve and Antioquia Gold, you can compare the effects of market volatilities on Gold Reserve and Antioquia 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 Reserve with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Reserve and Antioquia Gold.
Diversification Opportunities for Gold Reserve and Antioquia Gold
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gold and Antioquia is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Gold Reserve and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold and Gold Reserve 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 Reserve are associated (or correlated) with Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of Gold Reserve i.e., Gold Reserve and Antioquia Gold go up and down completely randomly.
Pair Corralation between Gold Reserve and Antioquia Gold
Assuming the 90 days horizon Gold Reserve is expected to under-perform the Antioquia Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Gold Reserve is 2.22 times less risky than Antioquia Gold. The otc stock trades about -0.19 of its potential returns per unit of risk. The Antioquia Gold is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Antioquia Gold on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Reserve vs. Antioquia Gold
Performance |
| Timeline |
| Gold Reserve |
| Antioquia Gold |
Gold Reserve and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Reserve and Antioquia Gold
The main advantage of trading using opposite Gold Reserve and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Reserve position performs unexpectedly, Antioquia 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.| Gold Reserve vs. Monarch Mining | Gold Reserve vs. Lundin Gold | Gold Reserve vs. Liberty Gold Corp | Gold Reserve vs. Minera Alamos |
| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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