Correlation Between Golden Star and GoldMining

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Can any of the company-specific risk be diversified away by investing in both Golden Star and GoldMining 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 Golden Star and GoldMining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Star Resource and GoldMining, you can compare the effects of market volatilities on Golden Star and GoldMining 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 Golden Star with a short position of GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Star and GoldMining.

Diversification Opportunities for Golden Star and GoldMining

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Golden and GoldMining is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Golden Star Resource and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining and Golden Star 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 Golden Star Resource are associated (or correlated) with GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of Golden Star i.e., Golden Star and GoldMining go up and down completely randomly.

Pair Corralation between Golden Star and GoldMining

If you would invest  115.00  in Golden Star Resource on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Golden Star Resource or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

Golden Star Resource  vs.  GoldMining

 Performance 
       Timeline  
Golden Star Resource 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Golden Star Resource are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Golden Star unveiled solid returns over the last few months and may actually be approaching a breakup point.
GoldMining 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GoldMining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, GoldMining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Golden Star and GoldMining Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Golden Star and GoldMining

The main advantage of trading using opposite Golden Star and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Star position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining's long position.
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The idea behind Golden Star Resource and GoldMining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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