Correlation Between Giga Metals and Almonty Industries
Can any of the company-specific risk be diversified away by investing in both Giga Metals 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 Giga Metals and Almonty Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and Almonty Industries, you can compare the effects of market volatilities on Giga Metals 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 Giga Metals with a short position of Almonty Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and Almonty Industries.
Diversification Opportunities for Giga Metals and Almonty Industries
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Giga and Almonty is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and Almonty Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almonty Industries and Giga Metals 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 Giga Metals 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 Giga Metals i.e., Giga Metals and Almonty Industries go up and down completely randomly.
Pair Corralation between Giga Metals 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 |
Giga Metals vs. Almonty Industries
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Almonty Industries |
Giga Metals and Almonty Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and Almonty Industries
The main advantage of trading using opposite Giga Metals and Almonty Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals 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.| Giga Metals vs. Canada Nickel | Giga Metals vs. Giga Metals Corp | Giga Metals vs. Talon Metals Corp | Giga Metals vs. FPX Nickel 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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