Correlation Between Galane Gold and Precipitate Gold
Can any of the company-specific risk be diversified away by investing in both Galane Gold and Precipitate 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 Galane Gold and Precipitate Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galane Gold and Precipitate Gold Corp, you can compare the effects of market volatilities on Galane Gold and Precipitate 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 Galane Gold with a short position of Precipitate Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galane Gold and Precipitate Gold.
Diversification Opportunities for Galane Gold and Precipitate Gold
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galane and Precipitate is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Galane Gold and Precipitate Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precipitate Gold Corp and Galane Gold 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 Galane Gold are associated (or correlated) with Precipitate Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precipitate Gold Corp has no effect on the direction of Galane Gold i.e., Galane Gold and Precipitate Gold go up and down completely randomly.
Pair Corralation between Galane Gold and Precipitate Gold
Assuming the 90 days horizon Galane Gold is expected to under-perform the Precipitate Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Galane Gold is 1.51 times less risky than Precipitate Gold. The otc stock trades about -0.04 of its potential returns per unit of risk. The Precipitate Gold Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4.69 in Precipitate Gold Corp on October 26, 2024 and sell it today you would earn a total of 3.65 from holding Precipitate Gold Corp or generate 77.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Galane Gold vs. Precipitate Gold Corp
Performance |
| Timeline |
| Galane Gold |
| Precipitate Gold Corp |
Galane Gold and Precipitate Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galane Gold and Precipitate Gold
The main advantage of trading using opposite Galane Gold and Precipitate Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galane Gold position performs unexpectedly, Precipitate 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 Precipitate Gold will offset losses from the drop in Precipitate Gold's long position.| Galane Gold vs. Fortuna Silver Mines | Galane Gold vs. White Gold Corp | Galane Gold vs. Maple Gold Mines | Galane Gold vs. Orogen Royalties |
| Precipitate Gold vs. Falcon Gold Corp | Precipitate Gold vs. Altamira Gold Corp | Precipitate Gold vs. KORE Mining | Precipitate Gold vs. Vior Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |