Correlation Between Golden Goliath and Core Assets
Can any of the company-specific risk be diversified away by investing in both Golden Goliath and Core Assets 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 Core Assets 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 Core Assets Corp, you can compare the effects of market volatilities on Golden Goliath and Core Assets 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 Core Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Goliath and Core Assets.
Diversification Opportunities for Golden Goliath and Core Assets
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Golden and Core is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Golden Goliath Resources and Core Assets Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Assets Corp 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 Core Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Assets Corp has no effect on the direction of Golden Goliath i.e., Golden Goliath and Core Assets go up and down completely randomly.
Pair Corralation between Golden Goliath and Core Assets
Assuming the 90 days horizon Golden Goliath Resources is expected to generate 17.29 times more return on investment than Core Assets. However, Golden Goliath is 17.29 times more volatile than Core Assets Corp. It trades about 0.19 of its potential returns per unit of risk. Core Assets Corp is currently generating about -0.03 per unit of risk. If you would invest 28.00 in Golden Goliath Resources on September 3, 2024 and sell it today you would lose (21.90) from holding Golden Goliath Resources or give up 78.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Golden Goliath Resources vs. Core Assets Corp
Performance |
| Timeline |
| Golden Goliath Resources |
| Core Assets Corp |
Golden Goliath and Core Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Goliath and Core Assets
The main advantage of trading using opposite Golden Goliath and Core Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Goliath position performs unexpectedly, Core Assets 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 Core Assets will offset losses from the drop in Core Assets' long position.| Golden Goliath vs. Silver Spruce Resources | Golden Goliath vs. Portofino Resources | Golden Goliath vs. Freegold Ventures Limited | Golden Goliath vs. Bravada Gold |
| Core Assets vs. Qubec Nickel Corp | Core Assets vs. IGO Limited | Core Assets vs. Avarone Metals | Core Assets vs. Adriatic Metals PLC |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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