Correlation Between GobiMin and Western Sierra
Can any of the company-specific risk be diversified away by investing in both GobiMin and Western Sierra 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 Western Sierra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GobiMin and Western Sierra Mining, you can compare the effects of market volatilities on GobiMin and Western Sierra 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 Western Sierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of GobiMin and Western Sierra.
Diversification Opportunities for GobiMin and Western Sierra
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GobiMin and Western is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding GobiMin and Western Sierra Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Sierra Mining 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 Western Sierra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Sierra Mining has no effect on the direction of GobiMin i.e., GobiMin and Western Sierra go up and down completely randomly.
Pair Corralation between GobiMin and Western Sierra
If you would invest 0.68 in Western Sierra Mining on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Western Sierra Mining 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. Western Sierra Mining
Performance |
| Timeline |
| GobiMin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Western Sierra Mining |
GobiMin and Western Sierra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GobiMin and Western Sierra
The main advantage of trading using opposite GobiMin and Western Sierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GobiMin position performs unexpectedly, Western Sierra 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 Western Sierra will offset losses from the drop in Western Sierra's long position.| GobiMin vs. Pintec Technology Holdings | GobiMin vs. Willamette Valley Vineyards | GobiMin vs. Molson Coors Brewing | GobiMin vs. AmTrust Financial Services |
| Western Sierra vs. Green Cures Botanical | Western Sierra vs. Cann American Corp | Western Sierra vs. Rimrock Gold Corp | Western Sierra vs. Galexxy Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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