Correlation Between Giga Metals and StrikePoint Gold
Can any of the company-specific risk be diversified away by investing in both Giga Metals and StrikePoint Gold 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 StrikePoint Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and StrikePoint Gold, you can compare the effects of market volatilities on Giga Metals and StrikePoint Gold 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 StrikePoint Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and StrikePoint Gold.
Diversification Opportunities for Giga Metals and StrikePoint Gold
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Giga and StrikePoint is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and StrikePoint Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StrikePoint Gold 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 StrikePoint Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StrikePoint Gold has no effect on the direction of Giga Metals i.e., Giga Metals and StrikePoint Gold go up and down completely randomly.
Pair Corralation between Giga Metals and StrikePoint Gold
If you would invest 55.00 in StrikePoint Gold on September 3, 2024 and sell it today you would lose (40.00) from holding StrikePoint Gold or give up 72.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.6% |
| Values | Daily Returns |
Giga Metals vs. StrikePoint Gold
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| StrikePoint Gold |
Giga Metals and StrikePoint Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and StrikePoint Gold
The main advantage of trading using opposite Giga Metals and StrikePoint Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, StrikePoint Gold 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 StrikePoint Gold will offset losses from the drop in StrikePoint Gold'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 |
| StrikePoint Gold vs. Commerce Resources Corp | StrikePoint Gold vs. Great Western Minerals | StrikePoint Gold vs. Silver Elephant Mining | StrikePoint Gold vs. Eskay Mining 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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