Correlation Between Golden Goliath and Champion Bear
Can any of the company-specific risk be diversified away by investing in both Golden Goliath and Champion Bear 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 Golden Goliath and Champion Bear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Goliath Resources and Champion Bear Resources, you can compare the effects of market volatilities on Golden Goliath and Champion Bear 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 Golden Goliath with a short position of Champion Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Goliath and Champion Bear.
Diversification Opportunities for Golden Goliath and Champion Bear
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and Champion is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Golden Goliath Resources and Champion Bear Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Bear Resources and Golden Goliath 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 Golden Goliath Resources are associated (or correlated) with Champion Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Bear Resources has no effect on the direction of Golden Goliath i.e., Golden Goliath and Champion Bear go up and down completely randomly.
Pair Corralation between Golden Goliath and Champion Bear
Assuming the 90 days horizon Golden Goliath Resources is expected to generate 4.77 times more return on investment than Champion Bear. However, Golden Goliath is 4.77 times more volatile than Champion Bear Resources. It trades about 0.1 of its potential returns per unit of risk. Champion Bear Resources is currently generating about -0.07 per unit of risk. If you would invest 9.49 in Golden Goliath Resources on August 25, 2024 and sell it today you would lose (3.49) from holding Golden Goliath Resources or give up 36.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Goliath Resources vs. Champion Bear Resources
Performance |
| Timeline |
| Golden Goliath Resources |
| Champion Bear Resources |
Golden Goliath and Champion Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Goliath and Champion Bear
The main advantage of trading using opposite Golden Goliath and Champion Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Goliath position performs unexpectedly, Champion Bear 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 Champion Bear will offset losses from the drop in Champion Bear's long position.| Golden Goliath vs. Silver Spruce Resources | Golden Goliath vs. Portofino Resources | Golden Goliath vs. Freegold Ventures Limited | Golden Goliath vs. Bravada Gold |
| Champion Bear vs. Norra Metals Corp | Champion Bear vs. ZincX Resources Corp | Champion Bear vs. Nuinsco Resources Limited | Champion Bear vs. South Star Battery |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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