Correlation Between Golden Goliath and Metallic Minerals
Can any of the company-specific risk be diversified away by investing in both Golden Goliath and Metallic Minerals 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 Goliath and Metallic Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Goliath Resources and Metallic Minerals Corp, you can compare the effects of market volatilities on Golden Goliath and Metallic Minerals 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 Goliath with a short position of Metallic Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Goliath and Metallic Minerals.
Diversification Opportunities for Golden Goliath and Metallic Minerals
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and Metallic is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Golden Goliath Resources and Metallic Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metallic Minerals Corp and Golden Goliath 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 Goliath Resources are associated (or correlated) with Metallic Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metallic Minerals Corp has no effect on the direction of Golden Goliath i.e., Golden Goliath and Metallic Minerals go up and down completely randomly.
Pair Corralation between Golden Goliath and Metallic Minerals
Assuming the 90 days horizon Golden Goliath Resources is expected to generate 0.8 times more return on investment than Metallic Minerals. However, Golden Goliath Resources is 1.25 times less risky than Metallic Minerals. It trades about -0.21 of its potential returns per unit of risk. Metallic Minerals Corp is currently generating about -0.49 per unit of risk. If you would invest 5.00 in Golden Goliath Resources on August 30, 2024 and sell it today you would lose (1.00) from holding Golden Goliath Resources or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Goliath Resources vs. Metallic Minerals Corp
Performance |
| Timeline |
| Golden Goliath Resources |
| Metallic Minerals Corp |
Golden Goliath and Metallic Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Goliath and Metallic Minerals
The main advantage of trading using opposite Golden Goliath and Metallic Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Goliath position performs unexpectedly, Metallic Minerals 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 Metallic Minerals will offset losses from the drop in Metallic Minerals' long position.| Golden Goliath vs. Minera Alamos | Golden Goliath vs. Klondike Gold Corp | Golden Goliath vs. Metallic Minerals Corp | Golden Goliath vs. Teuton Resources Corp |
| Metallic Minerals vs. Teuton Resources Corp | Metallic Minerals vs. Golden Goliath Resources | Metallic Minerals vs. Baroyeca Gold Silver | Metallic Minerals vs. Minera Alamos |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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