Correlation Between Golden Lake and ATT
Can any of the company-specific risk be diversified away by investing in both Golden Lake and ATT 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 ATT 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 ATT Inc, you can compare the effects of market volatilities on Golden Lake and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Lake and ATT.
Diversification Opportunities for Golden Lake and ATT
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and ATT is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Golden Lake Exploration and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Golden Lake i.e., Golden Lake and ATT go up and down completely randomly.
Pair Corralation between Golden Lake and ATT
Assuming the 90 days horizon Golden Lake Exploration is expected to generate 6.36 times more return on investment than ATT. However, Golden Lake is 6.36 times more volatile than ATT Inc. It trades about 0.03 of its potential returns per unit of risk. ATT Inc is currently generating about 0.08 per unit of risk. If you would invest 8.44 in Golden Lake Exploration on December 1, 2024 and sell it today you would lose (4.89) from holding Golden Lake Exploration or give up 57.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Golden Lake Exploration vs. ATT Inc
Performance |
| Timeline |
| Golden Lake Exploration |
| ATT Inc |
Golden Lake and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Lake and ATT
The main advantage of trading using opposite Golden Lake and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Lake position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT'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 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |