Correlation Between GGX Gold and Moneta Gold
Can any of the company-specific risk be diversified away by investing in both GGX Gold and Moneta Gold 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 GGX Gold and Moneta Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GGX Gold Corp and Moneta Gold, you can compare the effects of market volatilities on GGX Gold and Moneta Gold 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 GGX Gold with a short position of Moneta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GGX Gold and Moneta Gold.
Diversification Opportunities for GGX Gold and Moneta Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GGX and Moneta is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GGX Gold Corp and Moneta Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneta Gold and GGX 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 GGX Gold Corp are associated (or correlated) with Moneta Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneta Gold has no effect on the direction of GGX Gold i.e., GGX Gold and Moneta Gold go up and down completely randomly.
Pair Corralation between GGX Gold and Moneta Gold
If you would invest 1.32 in GGX Gold Corp on August 25, 2024 and sell it today you would earn a total of 0.50 from holding GGX Gold Corp or generate 37.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.44% |
| Values | Daily Returns |
GGX Gold Corp vs. Moneta Gold
Performance |
| Timeline |
| GGX Gold Corp |
| Moneta Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GGX Gold and Moneta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GGX Gold and Moneta Gold
The main advantage of trading using opposite GGX Gold and Moneta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GGX Gold position performs unexpectedly, Moneta Gold 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 Moneta Gold will offset losses from the drop in Moneta Gold's long position.| GGX Gold vs. Aurion Resources | GGX Gold vs. Liberty Gold Corp | GGX Gold vs. Rio2 Limited | GGX Gold vs. Orezone Gold Corp |
| Moneta Gold vs. Liberty Gold Corp | Moneta Gold vs. Lion One Metals | Moneta Gold vs. Galane Gold | Moneta Gold vs. Fortuna Silver Mines |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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