Correlation Between GFG Resources and Marathon Gold
Can any of the company-specific risk be diversified away by investing in both GFG Resources and Marathon 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 GFG Resources and Marathon Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFG Resources and Marathon Gold, you can compare the effects of market volatilities on GFG Resources and Marathon 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 GFG Resources with a short position of Marathon Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFG Resources and Marathon Gold.
Diversification Opportunities for GFG Resources and Marathon Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GFG and Marathon is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding GFG Resources and Marathon Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Gold and GFG Resources 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 GFG Resources are associated (or correlated) with Marathon Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Gold has no effect on the direction of GFG Resources i.e., GFG Resources and Marathon Gold go up and down completely randomly.
Pair Corralation between GFG Resources and Marathon Gold
If you would invest 8.44 in GFG Resources on August 25, 2024 and sell it today you would earn a total of 2.56 from holding GFG Resources or generate 30.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.44% |
| Values | Daily Returns |
GFG Resources vs. Marathon Gold
Performance |
| Timeline |
| GFG Resources |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GFG Resources and Marathon Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFG Resources and Marathon Gold
The main advantage of trading using opposite GFG Resources and Marathon Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFG Resources position performs unexpectedly, Marathon 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 Marathon Gold will offset losses from the drop in Marathon Gold's long position.| GFG Resources vs. Japan Gold Corp | GFG Resources vs. Robex Resources | GFG Resources vs. Rover Metals Corp | GFG Resources vs. Orefinders Resources |
| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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