Correlation Between Guskin Gold and Bluestone Resources
Can any of the company-specific risk be diversified away by investing in both Guskin Gold and Bluestone Resources 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 Bluestone Resources 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 Bluestone Resources, you can compare the effects of market volatilities on Guskin Gold and Bluestone Resources 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 Bluestone Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guskin Gold and Bluestone Resources.
Diversification Opportunities for Guskin Gold and Bluestone Resources
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guskin and Bluestone is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Guskin Gold Corp and Bluestone Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluestone Resources 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 Bluestone Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluestone Resources has no effect on the direction of Guskin Gold i.e., Guskin Gold and Bluestone Resources go up and down completely randomly.
Pair Corralation between Guskin Gold and Bluestone Resources
Given the investment horizon of 90 days Guskin Gold Corp is expected to generate 5.33 times more return on investment than Bluestone Resources. However, Guskin Gold is 5.33 times more volatile than Bluestone Resources. It trades about 0.04 of its potential returns per unit of risk. Bluestone Resources is currently generating about 0.03 per unit of risk. If you would invest 41.00 in Guskin Gold Corp on September 4, 2024 and sell it today you would lose (40.99) from holding Guskin Gold Corp or give up 99.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.7% |
| Values | Daily Returns |
Guskin Gold Corp vs. Bluestone Resources
Performance |
| Timeline |
| Guskin Gold Corp |
| Bluestone Resources |
Guskin Gold and Bluestone Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guskin Gold and Bluestone Resources
The main advantage of trading using opposite Guskin Gold and Bluestone Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guskin Gold position performs unexpectedly, Bluestone Resources 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 Bluestone Resources will offset losses from the drop in Bluestone Resources' 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 |
| Bluestone Resources vs. Qubec Nickel Corp | Bluestone Resources vs. IGO Limited | Bluestone Resources vs. Avarone Metals | Bluestone Resources 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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