Correlation Between Grande Portage and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both Grande Portage and Antioquia Gold 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 Grande Portage and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Portage Resources and Antioquia Gold, you can compare the effects of market volatilities on Grande Portage and Antioquia Gold 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 Grande Portage with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Portage and Antioquia Gold.
Diversification Opportunities for Grande Portage and Antioquia Gold
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grande and Antioquia is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold and Grande Portage 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 Grande Portage Resources are associated (or correlated) with Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of Grande Portage i.e., Grande Portage and Antioquia Gold go up and down completely randomly.
Pair Corralation between Grande Portage and Antioquia Gold
Assuming the 90 days horizon Grande Portage Resources is expected to under-perform the Antioquia Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Grande Portage Resources is 5.91 times less risky than Antioquia Gold. The otc stock trades about -0.02 of its potential returns per unit of risk. The Antioquia Gold is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Antioquia Gold on November 6, 2024 and sell it today you would lose (1.00) from holding Antioquia Gold or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grande Portage Resources vs. Antioquia Gold
Performance |
| Timeline |
| Grande Portage Resources |
| Antioquia Gold |
Grande Portage and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Portage and Antioquia Gold
The main advantage of trading using opposite Grande Portage and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Portage position performs unexpectedly, Antioquia Gold 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.| Grande Portage vs. Piedmont Lithium Ltd | Grande Portage vs. Sigma Lithium Resources | Grande Portage vs. Standard Lithium | Grande Portage vs. MP Materials Corp |
| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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