Correlation Between Gold Road and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both Gold Road and Actinogen Medical 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 Gold Road and Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and Actinogen Medical, you can compare the effects of market volatilities on Gold Road and Actinogen Medical 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 Gold Road with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and Actinogen Medical.
Diversification Opportunities for Gold Road and Actinogen Medical
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gold and Actinogen is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and Gold Road 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 Gold Road Resources are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Gold Road i.e., Gold Road and Actinogen Medical go up and down completely randomly.
Pair Corralation between Gold Road and Actinogen Medical
Assuming the 90 days trading horizon Gold Road Resources is expected to under-perform the Actinogen Medical. But the stock apears to be less risky and, when comparing its historical volatility, Gold Road Resources is 1.87 times less risky than Actinogen Medical. The stock trades about -0.05 of its potential returns per unit of risk. The Actinogen Medical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Actinogen Medical on August 31, 2024 and sell it today you would earn a total of 0.10 from holding Actinogen Medical or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Road Resources vs. Actinogen Medical
Performance |
| Timeline |
| Gold Road Resources |
| Actinogen Medical |
Gold Road and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Road and Actinogen Medical
The main advantage of trading using opposite Gold Road and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| Gold Road vs. Northern Star Resources | Gold Road vs. Evolution Mining | Gold Road vs. Bluescope Steel | Gold Road vs. De Grey Mining |
| Actinogen Medical vs. Aneka Tambang Tbk | Actinogen Medical vs. Woolworths | Actinogen Medical vs. Commonwealth Bank | Actinogen Medical vs. BHP Group Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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