Correlation Between Cassiar Gold and Angus Ventures
Can any of the company-specific risk be diversified away by investing in both Cassiar Gold and Angus Ventures 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 Angus Ventures 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 Angus Ventures, you can compare the effects of market volatilities on Cassiar Gold and Angus Ventures 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 Angus Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cassiar Gold and Angus Ventures.
Diversification Opportunities for Cassiar Gold and Angus Ventures
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cassiar and Angus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cassiar Gold Corp and Angus Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angus Ventures 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 Angus Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angus Ventures has no effect on the direction of Cassiar Gold i.e., Cassiar Gold and Angus Ventures go up and down completely randomly.
Pair Corralation between Cassiar Gold and Angus Ventures
Assuming the 90 days trading horizon Cassiar Gold Corp is expected to under-perform the Angus Ventures. But the stock apears to be less risky and, when comparing its historical volatility, Cassiar Gold Corp is 1.02 times less risky than Angus Ventures. The stock trades about -0.04 of its potential returns per unit of risk. The Angus Ventures is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 76.00 in Angus Ventures on September 12, 2024 and sell it today you would lose (28.00) from holding Angus Ventures or give up 36.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cassiar Gold Corp vs. Angus Ventures
Performance |
| Timeline |
| Cassiar Gold Corp |
| Angus Ventures |
Cassiar Gold and Angus Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cassiar Gold and Angus Ventures
The main advantage of trading using opposite Cassiar Gold and Angus Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cassiar Gold position performs unexpectedly, Angus Ventures 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 Angus Ventures will offset losses from the drop in Angus Ventures' long position.| Cassiar Gold vs. Ressources Minieres Radisson | Cassiar Gold vs. Galantas Gold Corp | Cassiar Gold vs. Red Pine Exploration | Cassiar Gold vs. Kore Mining |
| Angus Ventures vs. Viva Gold Corp | Angus Ventures vs. Heliostar Metals | Angus Ventures vs. Cassiar Gold Corp | Angus Ventures vs. Gold Terra Resource |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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