Correlation Between Guskin Gold and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Guskin Gold and Antilles 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 Guskin Gold and Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guskin Gold Corp and Antilles Gold Limited, you can compare the effects of market volatilities on Guskin Gold and Antilles 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 Guskin Gold with a short position of Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guskin Gold and Antilles Gold.
Diversification Opportunities for Guskin Gold and Antilles Gold
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guskin and Antilles is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Guskin Gold Corp and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited and Guskin 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 Guskin Gold Corp are associated (or correlated) with Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Guskin Gold i.e., Guskin Gold and Antilles Gold go up and down completely randomly.
Pair Corralation between Guskin Gold and Antilles Gold
Given the investment horizon of 90 days Guskin Gold is expected to generate 4.62 times less return on investment than Antilles Gold. But when comparing it to its historical volatility, Guskin Gold Corp is 1.58 times less risky than Antilles Gold. It trades about 0.04 of its potential returns per unit of risk. Antilles Gold Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 6.44 in Antilles Gold Limited on September 4, 2024 and sell it today you would lose (6.16) from holding Antilles Gold Limited or give up 95.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Guskin Gold Corp vs. Antilles Gold Limited
Performance |
| Timeline |
| Guskin Gold Corp |
| Antilles Gold Limited |
Guskin Gold and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guskin Gold and Antilles Gold
The main advantage of trading using opposite Guskin Gold and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guskin Gold position performs unexpectedly, Antilles 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| Guskin Gold vs. GMV Minerals | Guskin Gold vs. Antilles Gold Limited | Guskin Gold vs. Q2 Metals Corp | Guskin Gold vs. Joshua Gold Resources |
| Antilles Gold vs. Harmony Gold Mining | Antilles Gold vs. SPACE | Antilles Gold vs. T Rowe Price | Antilles Gold vs. Ampleforth |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| CEOs Directory Screen CEOs from public companies around the world |