Correlation Between Goldgroup Mining and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both Goldgroup Mining 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 Goldgroup Mining and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldgroup Mining and Antioquia Gold, you can compare the effects of market volatilities on Goldgroup Mining 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 Goldgroup Mining with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldgroup Mining and Antioquia Gold.
Diversification Opportunities for Goldgroup Mining and Antioquia Gold
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldgroup and Antioquia is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Goldgroup Mining and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold and Goldgroup Mining 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 Goldgroup Mining 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 Goldgroup Mining i.e., Goldgroup Mining and Antioquia Gold go up and down completely randomly.
Pair Corralation between Goldgroup Mining and Antioquia Gold
If you would invest 16.00 in Goldgroup Mining on December 4, 2024 and sell it today you would earn a total of 14.00 from holding Goldgroup Mining or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldgroup Mining vs. Antioquia Gold
Performance |
| Timeline |
| Goldgroup Mining |
| Antioquia Gold |
Goldgroup Mining and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldgroup Mining and Antioquia Gold
The main advantage of trading using opposite Goldgroup Mining and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldgroup Mining 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.| Goldgroup Mining vs. Antioquia Gold | Goldgroup Mining vs. Asante Gold | Goldgroup Mining vs. Big Ridge Gold | Goldgroup Mining vs. Angus Gold |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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