Correlation Between Grande Portage and St James
Can any of the company-specific risk be diversified away by investing in both Grande Portage and St James 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 St James 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 St James Gold, you can compare the effects of market volatilities on Grande Portage and St James 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 St James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Portage and St James.
Diversification Opportunities for Grande Portage and St James
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grande and LRDJF is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and St James Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St James 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 St James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St James Gold has no effect on the direction of Grande Portage i.e., Grande Portage and St James go up and down completely randomly.
Pair Corralation between Grande Portage and St James
Assuming the 90 days horizon Grande Portage is expected to generate 34.18 times less return on investment than St James. But when comparing it to its historical volatility, Grande Portage Resources is 4.53 times less risky than St James. It trades about 0.02 of its potential returns per unit of risk. St James Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6.00 in St James Gold on November 3, 2024 and sell it today you would earn a total of 2.30 from holding St James Gold or generate 38.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grande Portage Resources vs. St James Gold
Performance |
| Timeline |
| Grande Portage Resources |
| St James Gold |
Grande Portage and St James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Portage and St James
The main advantage of trading using opposite Grande Portage and St James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Portage position performs unexpectedly, St James 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 St James will offset losses from the drop in St James' long position.| Grande Portage vs. Puma Exploration | Grande Portage vs. Sixty North Gold | Grande Portage vs. Red Pine Exploration | Grande Portage vs. Altamira Gold Corp |
| St James vs. Puma Exploration | St James vs. Sixty North Gold | St James vs. Red Pine Exploration | St James vs. Grande Portage 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |