Correlation Between Cassiar Gold and Equity Metals
Can any of the company-specific risk be diversified away by investing in both Cassiar Gold and Equity Metals 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 Cassiar Gold and Equity Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cassiar Gold Corp and Equity Metals Corp, you can compare the effects of market volatilities on Cassiar Gold and Equity Metals 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 Cassiar Gold with a short position of Equity Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cassiar Gold and Equity Metals.
Diversification Opportunities for Cassiar Gold and Equity Metals
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cassiar and Equity is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cassiar Gold Corp and Equity Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Metals Corp and Cassiar 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 Cassiar Gold Corp are associated (or correlated) with Equity Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Metals Corp has no effect on the direction of Cassiar Gold i.e., Cassiar Gold and Equity Metals go up and down completely randomly.
Pair Corralation between Cassiar Gold and Equity Metals
Assuming the 90 days trading horizon Cassiar Gold Corp is expected to generate 0.53 times more return on investment than Equity Metals. However, Cassiar Gold Corp is 1.9 times less risky than Equity Metals. It trades about -0.14 of its potential returns per unit of risk. Equity Metals Corp is currently generating about -0.26 per unit of risk. If you would invest 25.00 in Cassiar Gold Corp on August 25, 2024 and sell it today you would lose (3.00) from holding Cassiar Gold Corp or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cassiar Gold Corp vs. Equity Metals Corp
Performance |
| Timeline |
| Cassiar Gold Corp |
| Equity Metals Corp |
Cassiar Gold and Equity Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cassiar Gold and Equity Metals
The main advantage of trading using opposite Cassiar Gold and Equity Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cassiar Gold position performs unexpectedly, Equity Metals 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 Equity Metals will offset losses from the drop in Equity Metals' long position.| Cassiar Gold vs. First Majestic Silver | Cassiar Gold vs. Ivanhoe Energy | Cassiar Gold vs. Orezone Gold Corp | Cassiar Gold vs. Faraday Copper Corp |
| Equity Metals vs. First Majestic Silver | Equity Metals vs. Ivanhoe Energy | Equity Metals vs. Orezone Gold Corp | Equity Metals vs. Faraday Copper Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |