Correlation Between Getchell Gold and Phenom Resources
Can any of the company-specific risk be diversified away by investing in both Getchell Gold and Phenom Resources 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 Getchell Gold and Phenom Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getchell Gold Corp and Phenom Resources Corp, you can compare the effects of market volatilities on Getchell Gold and Phenom Resources 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 Getchell Gold with a short position of Phenom Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getchell Gold and Phenom Resources.
Diversification Opportunities for Getchell Gold and Phenom Resources
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getchell and Phenom is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Getchell Gold Corp and Phenom Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phenom Resources Corp and Getchell 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 Getchell Gold Corp are associated (or correlated) with Phenom Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phenom Resources Corp has no effect on the direction of Getchell Gold i.e., Getchell Gold and Phenom Resources go up and down completely randomly.
Pair Corralation between Getchell Gold and Phenom Resources
Assuming the 90 days horizon Getchell Gold Corp is expected to generate 1.31 times more return on investment than Phenom Resources. However, Getchell Gold is 1.31 times more volatile than Phenom Resources Corp. It trades about -0.18 of its potential returns per unit of risk. Phenom Resources Corp is currently generating about -0.25 per unit of risk. If you would invest 13.00 in Getchell Gold Corp on August 29, 2024 and sell it today you would lose (3.50) from holding Getchell Gold Corp or give up 26.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getchell Gold Corp vs. Phenom Resources Corp
Performance |
| Timeline |
| Getchell Gold Corp |
| Phenom Resources Corp |
Getchell Gold and Phenom Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getchell Gold and Phenom Resources
The main advantage of trading using opposite Getchell Gold and Phenom Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getchell Gold position performs unexpectedly, Phenom Resources 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 Phenom Resources will offset losses from the drop in Phenom Resources' long position.| Getchell Gold vs. White Gold Corp | Getchell Gold vs. Phenom Resources Corp | Getchell Gold vs. Revival Gold | Getchell Gold vs. Omai Gold Mines |
| Phenom Resources vs. Nulegacy Gold | Phenom Resources vs. Labrador Gold Corp | Phenom Resources vs. White Gold Corp | Phenom Resources vs. Getchell 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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