Correlation Between Golden Goliath and Cantex Mine
Can any of the company-specific risk be diversified away by investing in both Golden Goliath and Cantex Mine 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 Cantex Mine 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 Cantex Mine Development, you can compare the effects of market volatilities on Golden Goliath and Cantex Mine 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 Cantex Mine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Goliath and Cantex Mine.
Diversification Opportunities for Golden Goliath and Cantex Mine
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Golden and Cantex is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Golden Goliath Resources and Cantex Mine Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantex Mine Development 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 Cantex Mine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantex Mine Development has no effect on the direction of Golden Goliath i.e., Golden Goliath and Cantex Mine go up and down completely randomly.
Pair Corralation between Golden Goliath and Cantex Mine
Assuming the 90 days horizon Golden Goliath Resources is expected to generate 5.85 times more return on investment than Cantex Mine. However, Golden Goliath is 5.85 times more volatile than Cantex Mine Development. It trades about 0.13 of its potential returns per unit of risk. Cantex Mine Development is currently generating about 0.03 per unit of risk. If you would invest 8.50 in Golden Goliath Resources on September 1, 2024 and sell it today you would lose (2.40) from holding Golden Goliath Resources or give up 28.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Golden Goliath Resources vs. Cantex Mine Development
Performance |
| Timeline |
| Golden Goliath Resources |
| Cantex Mine Development |
Golden Goliath and Cantex Mine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Goliath and Cantex Mine
The main advantage of trading using opposite Golden Goliath and Cantex Mine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Goliath position performs unexpectedly, Cantex Mine 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 Cantex Mine will offset losses from the drop in Cantex Mine'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 |
| Cantex Mine vs. Champion Bear Resources | Cantex Mine vs. Aurelia Metals Limited | Cantex Mine vs. Baroyeca Gold Silver | Cantex Mine vs. Centaurus Metals Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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