Correlation Between GobiMin and Gold River
Can any of the company-specific risk be diversified away by investing in both GobiMin and Gold River 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 GobiMin and Gold River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GobiMin and Gold River Prods, you can compare the effects of market volatilities on GobiMin and Gold River 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 GobiMin with a short position of Gold River. Check out your portfolio center. Please also check ongoing floating volatility patterns of GobiMin and Gold River.
Diversification Opportunities for GobiMin and Gold River
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GobiMin and Gold is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding GobiMin and Gold River Prods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold River Prods and GobiMin 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 GobiMin are associated (or correlated) with Gold River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold River Prods has no effect on the direction of GobiMin i.e., GobiMin and Gold River go up and down completely randomly.
Pair Corralation between GobiMin and Gold River
If you would invest 127.00 in GobiMin on August 29, 2024 and sell it today you would earn a total of 0.00 from holding GobiMin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
GobiMin vs. Gold River Prods
Performance |
| Timeline |
| GobiMin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gold River Prods |
GobiMin and Gold River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GobiMin and Gold River
The main advantage of trading using opposite GobiMin and Gold River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GobiMin position performs unexpectedly, Gold River 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 Gold River will offset losses from the drop in Gold River's long position.| GobiMin vs. Universal Technical Institute | GobiMin vs. Dave Busters Entertainment | GobiMin vs. Bright Scholar Education | GobiMin vs. Pinterest |
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 CEOs Directory module to screen CEOs from public companies around the world.
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