Correlation Between Golden Lake and Bayhorse Silver
Can any of the company-specific risk be diversified away by investing in both Golden Lake and Bayhorse Silver 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 Lake and Bayhorse Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Lake Exploration and Bayhorse Silver, you can compare the effects of market volatilities on Golden Lake and Bayhorse Silver 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 Lake with a short position of Bayhorse Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Lake and Bayhorse Silver.
Diversification Opportunities for Golden Lake and Bayhorse Silver
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golden and Bayhorse is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Golden Lake Exploration and Bayhorse Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayhorse Silver and Golden Lake 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 Lake Exploration are associated (or correlated) with Bayhorse Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayhorse Silver has no effect on the direction of Golden Lake i.e., Golden Lake and Bayhorse Silver go up and down completely randomly.
Pair Corralation between Golden Lake and Bayhorse Silver
Assuming the 90 days horizon Golden Lake Exploration is expected to under-perform the Bayhorse Silver. But the otc stock apears to be less risky and, when comparing its historical volatility, Golden Lake Exploration is 1.94 times less risky than Bayhorse Silver. The otc stock trades about -0.13 of its potential returns per unit of risk. The Bayhorse Silver is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Bayhorse Silver on November 4, 2024 and sell it today you would lose (1.20) from holding Bayhorse Silver or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Lake Exploration vs. Bayhorse Silver
Performance |
| Timeline |
| Golden Lake Exploration |
| Bayhorse Silver |
Golden Lake and Bayhorse Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Lake and Bayhorse Silver
The main advantage of trading using opposite Golden Lake and Bayhorse Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Lake position performs unexpectedly, Bayhorse Silver 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 Bayhorse Silver will offset losses from the drop in Bayhorse Silver's long position.| Golden Lake vs. Prime Meridian Resources | Golden Lake vs. Macmahon Holdings Limited | Golden Lake vs. Rokmaster Resources Corp | Golden Lake vs. Hudson Resources |
| Bayhorse Silver vs. Golden Lake Exploration | Bayhorse Silver vs. Transition Metals Corp | Bayhorse Silver vs. Vendetta Mining Corp | Bayhorse Silver vs. Commerce Resources Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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