Correlation Between Golden Tag and Green Shift
Can any of the company-specific risk be diversified away by investing in both Golden Tag and Green Shift 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 Green Shift 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 Green Shift Commodities, you can compare the effects of market volatilities on Golden Tag and Green Shift 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 Green Shift. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tag and Green Shift.
Diversification Opportunities for Golden Tag and Green Shift
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Golden and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tag Resources and Green Shift Commodities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Shift Commodities 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 Green Shift. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Shift Commodities has no effect on the direction of Golden Tag i.e., Golden Tag and Green Shift go up and down completely randomly.
Pair Corralation between Golden Tag and Green Shift
If you would invest 2.88 in Green Shift Commodities on November 9, 2024 and sell it today you would lose (0.50) from holding Green Shift Commodities or give up 17.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Golden Tag Resources vs. Green Shift Commodities
Performance |
| Timeline |
| Golden Tag Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Green Shift Commodities |
Golden Tag and Green Shift Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tag and Green Shift
The main advantage of trading using opposite Golden Tag and Green Shift positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tag position performs unexpectedly, Green Shift 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 Green Shift will offset losses from the drop in Green Shift'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 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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