Correlation Between GoGold Resources and Tombstone Exploration
Can any of the company-specific risk be diversified away by investing in both GoGold Resources and Tombstone Exploration 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 GoGold Resources and Tombstone Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoGold Resources and Tombstone Exploration Corp, you can compare the effects of market volatilities on GoGold Resources and Tombstone Exploration 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 GoGold Resources with a short position of Tombstone Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoGold Resources and Tombstone Exploration.
Diversification Opportunities for GoGold Resources and Tombstone Exploration
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GoGold and Tombstone is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GoGold Resources and Tombstone Exploration Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tombstone Exploration and GoGold Resources 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 GoGold Resources are associated (or correlated) with Tombstone Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tombstone Exploration has no effect on the direction of GoGold Resources i.e., GoGold Resources and Tombstone Exploration go up and down completely randomly.
Pair Corralation between GoGold Resources and Tombstone Exploration
Assuming the 90 days horizon GoGold Resources is expected to generate 488.36 times less return on investment than Tombstone Exploration. But when comparing it to its historical volatility, GoGold Resources is 40.52 times less risky than Tombstone Exploration. It trades about 0.01 of its potential returns per unit of risk. Tombstone Exploration Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Tombstone Exploration Corp on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Tombstone Exploration Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
GoGold Resources vs. Tombstone Exploration Corp
Performance |
| Timeline |
| GoGold Resources |
| Tombstone Exploration |
GoGold Resources and Tombstone Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoGold Resources and Tombstone Exploration
The main advantage of trading using opposite GoGold Resources and Tombstone Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoGold Resources position performs unexpectedly, Tombstone Exploration 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 Tombstone Exploration will offset losses from the drop in Tombstone Exploration's long position.| GoGold Resources vs. Advantage Solutions | GoGold Resources vs. Atlas Corp | GoGold Resources vs. PureCycle Technologies | GoGold Resources vs. WM Technology |
| Tombstone Exploration vs. Summa Silver Corp | Tombstone Exploration vs. GoGold Resources | Tombstone Exploration vs. Scottie Resources Corp | Tombstone Exploration vs. Brixton Metals |
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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