Correlation Between Hawkeye Gold and District Copper
Can any of the company-specific risk be diversified away by investing in both Hawkeye Gold and District Copper 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 Hawkeye Gold and District Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkeye Gold and and District Copper Corp, you can compare the effects of market volatilities on Hawkeye Gold and District Copper 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 Hawkeye Gold with a short position of District Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkeye Gold and District Copper.
Diversification Opportunities for Hawkeye Gold and District Copper
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hawkeye and District is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hawkeye Gold and and District Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on District Copper Corp and Hawkeye 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 Hawkeye Gold and are associated (or correlated) with District Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of District Copper Corp has no effect on the direction of Hawkeye Gold i.e., Hawkeye Gold and District Copper go up and down completely randomly.
Pair Corralation between Hawkeye Gold and District Copper
Assuming the 90 days trading horizon Hawkeye Gold and is expected to under-perform the District Copper. In addition to that, Hawkeye Gold is 1.57 times more volatile than District Copper Corp. It trades about -0.09 of its total potential returns per unit of risk. District Copper Corp is currently generating about -0.04 per unit of volatility. If you would invest 4.00 in District Copper Corp on August 29, 2024 and sell it today you would lose (0.50) from holding District Copper Corp or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hawkeye Gold and vs. District Copper Corp
Performance |
| Timeline |
| Hawkeye Gold |
| District Copper Corp |
Hawkeye Gold and District Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkeye Gold and District Copper
The main advantage of trading using opposite Hawkeye Gold and District Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkeye Gold position performs unexpectedly, District Copper 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 District Copper will offset losses from the drop in District Copper's long position.| Hawkeye Gold vs. First Majestic Silver | Hawkeye Gold vs. Ivanhoe Energy | Hawkeye Gold vs. Orezone Gold Corp | Hawkeye Gold vs. Faraday Copper Corp |
| District Copper vs. Hawkeye Gold and | District Copper vs. Black Mammoth Metals | District Copper vs. ExGen Resources | District Copper vs. Wildsky 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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