Correlation Between Golden Tag and Huntsman Exploration
Can any of the company-specific risk be diversified away by investing in both Golden Tag and Huntsman Exploration 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 Huntsman Exploration 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 Huntsman Exploration, you can compare the effects of market volatilities on Golden Tag and Huntsman Exploration 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 Huntsman Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tag and Huntsman Exploration.
Diversification Opportunities for Golden Tag and Huntsman Exploration
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and Huntsman is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tag Resources and Huntsman Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman Exploration 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 Huntsman Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman Exploration has no effect on the direction of Golden Tag i.e., Golden Tag and Huntsman Exploration go up and down completely randomly.
Pair Corralation between Golden Tag and Huntsman Exploration
If you would invest 2.00 in Huntsman Exploration on September 14, 2024 and sell it today you would earn a total of 0.40 from holding Huntsman Exploration or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Golden Tag Resources vs. Huntsman Exploration
Performance |
| Timeline |
| Golden Tag Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Huntsman Exploration |
Golden Tag and Huntsman Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tag and Huntsman Exploration
The main advantage of trading using opposite Golden Tag and Huntsman Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tag position performs unexpectedly, Huntsman Exploration 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 Huntsman Exploration will offset losses from the drop in Huntsman Exploration's long position.| Golden Tag vs. NorthIsle Copper and | Golden Tag vs. Lucky Minerals | Golden Tag vs. Niobay Metals | Golden Tag vs. Kraken Energy Corp |
| Huntsman Exploration vs. Qubec Nickel Corp | Huntsman Exploration vs. IGO Limited | Huntsman Exploration vs. Focus Graphite | Huntsman Exploration vs. Mineral Res |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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