Correlation Between GoGold Resources and Viscount Mining
Can any of the company-specific risk be diversified away by investing in both GoGold Resources and Viscount Mining 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 Viscount Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoGold Resources and Viscount Mining Corp, you can compare the effects of market volatilities on GoGold Resources and Viscount Mining 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 Viscount Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoGold Resources and Viscount Mining.
Diversification Opportunities for GoGold Resources and Viscount Mining
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GoGold and Viscount is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding GoGold Resources and Viscount Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viscount Mining Corp 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 Viscount Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viscount Mining Corp has no effect on the direction of GoGold Resources i.e., GoGold Resources and Viscount Mining go up and down completely randomly.
Pair Corralation between GoGold Resources and Viscount Mining
Assuming the 90 days horizon GoGold Resources is expected to under-perform the Viscount Mining. But the otc stock apears to be less risky and, when comparing its historical volatility, GoGold Resources is 1.36 times less risky than Viscount Mining. The otc stock trades about -0.02 of its potential returns per unit of risk. The Viscount Mining Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Viscount Mining Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Viscount Mining Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoGold Resources vs. Viscount Mining Corp
Performance |
| Timeline |
| GoGold Resources |
| Viscount Mining Corp |
GoGold Resources and Viscount Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoGold Resources and Viscount Mining
The main advantage of trading using opposite GoGold Resources and Viscount Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoGold Resources position performs unexpectedly, Viscount Mining 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 Viscount Mining will offset losses from the drop in Viscount Mining's long position.| GoGold Resources vs. South32 Limited | GoGold Resources vs. NioCorp Developments Ltd | GoGold Resources vs. HUMANA INC | GoGold Resources vs. SCOR PK |
| Viscount Mining vs. Defiance Silver Corp | Viscount Mining vs. HUMANA INC | Viscount Mining vs. SCOR PK | Viscount Mining vs. Aquagold International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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