Correlation Between Golden Tag and Almonty Industries
Can any of the company-specific risk be diversified away by investing in both Golden Tag and Almonty Industries 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 Tag and Almonty Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Tag Resources and Almonty Industries, you can compare the effects of market volatilities on Golden Tag and Almonty Industries 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 Tag with a short position of Almonty Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tag and Almonty Industries.
Diversification Opportunities for Golden Tag and Almonty Industries
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Almonty is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tag Resources and Almonty Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almonty Industries and Golden Tag 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 Tag Resources are associated (or correlated) with Almonty Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almonty Industries has no effect on the direction of Golden Tag i.e., Golden Tag and Almonty Industries go up and down completely randomly.
Pair Corralation between Golden Tag and Almonty Industries
If you would invest 37.00 in Almonty Industries on September 14, 2024 and sell it today you would earn a total of 25.00 from holding Almonty Industries or generate 67.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Golden Tag Resources vs. Almonty Industries
Performance |
| Timeline |
| Golden Tag Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Almonty Industries |
Golden Tag and Almonty Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tag and Almonty Industries
The main advantage of trading using opposite Golden Tag and Almonty Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tag position performs unexpectedly, Almonty Industries 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 Almonty Industries will offset losses from the drop in Almonty Industries' long position.| Golden Tag vs. NorthIsle Copper and | Golden Tag vs. Lucky Minerals | Golden Tag vs. Niobay Metals | Golden Tag vs. Kraken Energy Corp |
| Almonty Industries vs. Huntsman Exploration | Almonty Industries vs. Aurelia Metals Limited | Almonty Industries vs. Adriatic Metals PLC | Almonty Industries vs. American Helium |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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