Correlation Between GoGold Resources and Gunpoint Exploration
Can any of the company-specific risk be diversified away by investing in both GoGold Resources and Gunpoint Exploration 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 GoGold Resources and Gunpoint Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoGold Resources and Gunpoint Exploration, you can compare the effects of market volatilities on GoGold Resources and Gunpoint Exploration 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 GoGold Resources with a short position of Gunpoint Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoGold Resources and Gunpoint Exploration.
Diversification Opportunities for GoGold Resources and Gunpoint Exploration
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GoGold and Gunpoint is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding GoGold Resources and Gunpoint Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunpoint Exploration and GoGold 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 GoGold Resources are associated (or correlated) with Gunpoint Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunpoint Exploration has no effect on the direction of GoGold Resources i.e., GoGold Resources and Gunpoint Exploration go up and down completely randomly.
Pair Corralation between GoGold Resources and Gunpoint Exploration
Assuming the 90 days trading horizon GoGold Resources is expected to generate 1.31 times more return on investment than Gunpoint Exploration. However, GoGold Resources is 1.31 times more volatile than Gunpoint Exploration. It trades about -0.23 of its potential returns per unit of risk. Gunpoint Exploration is currently generating about -0.31 per unit of risk. If you would invest 152.00 in GoGold Resources on September 2, 2024 and sell it today you would lose (22.00) from holding GoGold Resources or give up 14.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoGold Resources vs. Gunpoint Exploration
Performance |
| Timeline |
| GoGold Resources |
| Gunpoint Exploration |
GoGold Resources and Gunpoint Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoGold Resources and Gunpoint Exploration
The main advantage of trading using opposite GoGold Resources and Gunpoint Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoGold Resources position performs unexpectedly, Gunpoint Exploration 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 Gunpoint Exploration will offset losses from the drop in Gunpoint Exploration's long position.| GoGold Resources vs. Defiance Silver Corp | GoGold Resources vs. Liberty Gold Corp | GoGold Resources vs. Dolly Varden Silver | GoGold Resources vs. Minaurum Gold |
| Gunpoint Exploration vs. Minaurum Gold | Gunpoint Exploration vs. Dolly Varden Silver | Gunpoint Exploration vs. Santacruz Silv | Gunpoint Exploration vs. GoGold 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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