Correlation Between Golden Goliath and Allkem
Can any of the company-specific risk be diversified away by investing in both Golden Goliath and Allkem 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 Allkem 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 Allkem, you can compare the effects of market volatilities on Golden Goliath and Allkem 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 Allkem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Goliath and Allkem.
Diversification Opportunities for Golden Goliath and Allkem
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and Allkem is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Golden Goliath Resources and Allkem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allkem 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 Allkem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allkem has no effect on the direction of Golden Goliath i.e., Golden Goliath and Allkem go up and down completely randomly.
Pair Corralation between Golden Goliath and Allkem
If you would invest 3.00 in Golden Goliath Resources on September 13, 2024 and sell it today you would lose (1.25) from holding Golden Goliath Resources or give up 41.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Golden Goliath Resources vs. Allkem
Performance |
| Timeline |
| Golden Goliath Resources |
| Allkem |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Golden Goliath and Allkem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Goliath and Allkem
The main advantage of trading using opposite Golden Goliath and Allkem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Goliath position performs unexpectedly, Allkem 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 Allkem will offset losses from the drop in Allkem's long position.| Golden Goliath vs. Qubec Nickel Corp | Golden Goliath vs. IGO Limited | Golden Goliath vs. Focus Graphite | Golden Goliath vs. Mineral Res |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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