Correlation Between Golden Metal and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both Golden Metal and Oxford Technology 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 Metal and Oxford Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Metal Resources and Oxford Technology 2, you can compare the effects of market volatilities on Golden Metal and Oxford Technology 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 Metal with a short position of Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Metal and Oxford Technology.
Diversification Opportunities for Golden Metal and Oxford Technology
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Golden and Oxford is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Golden Metal Resources and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology and Golden Metal 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 Metal Resources are associated (or correlated) with Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Golden Metal i.e., Golden Metal and Oxford Technology go up and down completely randomly.
Pair Corralation between Golden Metal and Oxford Technology
Assuming the 90 days trading horizon Golden Metal Resources is expected to generate 24.22 times more return on investment than Oxford Technology. However, Golden Metal is 24.22 times more volatile than Oxford Technology 2. It trades about 0.06 of its potential returns per unit of risk. Oxford Technology 2 is currently generating about -0.12 per unit of risk. If you would invest 9.00 in Golden Metal Resources on October 12, 2024 and sell it today you would earn a total of 3,141 from holding Golden Metal Resources or generate 34900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.74% |
| Values | Daily Returns |
Golden Metal Resources vs. Oxford Technology 2
Performance |
| Timeline |
| Golden Metal Resources |
| Oxford Technology |
Golden Metal and Oxford Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Metal and Oxford Technology
The main advantage of trading using opposite Golden Metal and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Metal position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology's long position.| Golden Metal vs. Givaudan SA | Golden Metal vs. Antofagasta PLC | Golden Metal vs. Ferrexpo PLC | Golden Metal vs. Atalaya Mining |
| Oxford Technology vs. First Class Metals | Oxford Technology vs. CVS Health Corp | Oxford Technology vs. Golden Metal Resources | Oxford Technology vs. Abingdon Health Plc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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