Correlation Between Golden Lake and Rokmaster Resources
Can any of the company-specific risk be diversified away by investing in both Golden Lake and Rokmaster Resources 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 Rokmaster Resources 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 Rokmaster Resources Corp, you can compare the effects of market volatilities on Golden Lake and Rokmaster Resources 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 Rokmaster Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Lake and Rokmaster Resources.
Diversification Opportunities for Golden Lake and Rokmaster Resources
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and Rokmaster is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Golden Lake Exploration and Rokmaster Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rokmaster Resources Corp 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 Rokmaster Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rokmaster Resources Corp has no effect on the direction of Golden Lake i.e., Golden Lake and Rokmaster Resources go up and down completely randomly.
Pair Corralation between Golden Lake and Rokmaster Resources
Assuming the 90 days horizon Golden Lake Exploration is expected to under-perform the Rokmaster Resources. In addition to that, Golden Lake is 2.61 times more volatile than Rokmaster Resources Corp. It trades about -0.18 of its total potential returns per unit of risk. Rokmaster Resources Corp is currently generating about 0.01 per unit of volatility. If you would invest 1.60 in Rokmaster Resources Corp on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Rokmaster Resources Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Lake Exploration vs. Rokmaster Resources Corp
Performance |
| Timeline |
| Golden Lake Exploration |
| Rokmaster Resources Corp |
Golden Lake and Rokmaster Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Lake and Rokmaster Resources
The main advantage of trading using opposite Golden Lake and Rokmaster Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Lake position performs unexpectedly, Rokmaster Resources 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 Rokmaster Resources will offset losses from the drop in Rokmaster Resources' long position.| Golden Lake vs. Norra Metals Corp | Golden Lake vs. ZincX Resources Corp | Golden Lake vs. Nuinsco Resources Limited | Golden Lake vs. South Star Battery |
| Rokmaster Resources vs. Macmahon Holdings Limited | Rokmaster Resources vs. Hudson Resources | Rokmaster Resources vs. Thunder Gold Corp | Rokmaster Resources vs. Prime Meridian Resources |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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