Correlation Between Giga Metals and Golden Tag
Can any of the company-specific risk be diversified away by investing in both Giga Metals and Golden Tag 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 Golden Tag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and Golden Tag Resources, you can compare the effects of market volatilities on Giga Metals and Golden Tag 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 Golden Tag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and Golden Tag.
Diversification Opportunities for Giga Metals and Golden Tag
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Giga and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and Golden Tag Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Tag Resources 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 Golden Tag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Tag Resources has no effect on the direction of Giga Metals i.e., Giga Metals and Golden Tag go up and down completely randomly.
Pair Corralation between Giga Metals and Golden Tag
If you would invest (100.00) in Golden Tag Resources on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Golden Tag Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Giga Metals vs. Golden Tag Resources
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Golden Tag Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Giga Metals and Golden Tag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and Golden Tag
The main advantage of trading using opposite Giga Metals and Golden Tag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, Golden Tag 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 Golden Tag will offset losses from the drop in Golden Tag's 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 |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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