Correlation Between Marvel Gold and GFG Resources
Can any of the company-specific risk be diversified away by investing in both Marvel Gold and GFG 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 Marvel Gold and GFG Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marvel Gold Limited and GFG Resources, you can compare the effects of market volatilities on Marvel Gold and GFG 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 Marvel Gold with a short position of GFG Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvel Gold and GFG Resources.
Diversification Opportunities for Marvel Gold and GFG Resources
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marvel and GFG is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Marvel Gold Limited and GFG Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFG Resources and Marvel Gold 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 Marvel Gold Limited are associated (or correlated) with GFG Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFG Resources has no effect on the direction of Marvel Gold i.e., Marvel Gold and GFG Resources go up and down completely randomly.
Pair Corralation between Marvel Gold and GFG Resources
Assuming the 90 days horizon Marvel Gold Limited is expected to under-perform the GFG Resources. In addition to that, Marvel Gold is 3.93 times more volatile than GFG Resources. It trades about -0.21 of its total potential returns per unit of risk. GFG Resources is currently generating about -0.15 per unit of volatility. If you would invest 13.00 in GFG Resources on August 29, 2024 and sell it today you would lose (2.00) from holding GFG Resources or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Marvel Gold Limited vs. GFG Resources
Performance |
| Timeline |
| Marvel Gold Limited |
| GFG Resources |
Marvel Gold and GFG Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvel Gold and GFG Resources
The main advantage of trading using opposite Marvel Gold and GFG Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvel Gold position performs unexpectedly, GFG 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 GFG Resources will offset losses from the drop in GFG Resources' long position.| Marvel Gold vs. Liberty Gold Corp | Marvel Gold vs. Lion One Metals | Marvel Gold vs. GGX Gold Corp | Marvel Gold vs. Hummingbird Resources PLC |
| GFG Resources vs. Japan Gold Corp | GFG Resources vs. Robex Resources | GFG Resources vs. Rover Metals Corp | GFG Resources vs. Orefinders 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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