Correlation Between Harfang Exploration and Gouverneur Bancorp
Can any of the company-specific risk be diversified away by investing in both Harfang Exploration and Gouverneur Bancorp 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 Harfang Exploration and Gouverneur Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harfang Exploration and Gouverneur Bancorp, you can compare the effects of market volatilities on Harfang Exploration and Gouverneur Bancorp 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 Harfang Exploration with a short position of Gouverneur Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harfang Exploration and Gouverneur Bancorp.
Diversification Opportunities for Harfang Exploration and Gouverneur Bancorp
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harfang and Gouverneur is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Harfang Exploration and Gouverneur Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gouverneur Bancorp and Harfang Exploration 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 Harfang Exploration are associated (or correlated) with Gouverneur Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gouverneur Bancorp has no effect on the direction of Harfang Exploration i.e., Harfang Exploration and Gouverneur Bancorp go up and down completely randomly.
Pair Corralation between Harfang Exploration and Gouverneur Bancorp
Assuming the 90 days horizon Harfang Exploration is expected to generate 7.48 times more return on investment than Gouverneur Bancorp. However, Harfang Exploration is 7.48 times more volatile than Gouverneur Bancorp. It trades about 0.08 of its potential returns per unit of risk. Gouverneur Bancorp is currently generating about 0.25 per unit of risk. If you would invest 5.55 in Harfang Exploration on August 29, 2024 and sell it today you would earn a total of 0.45 from holding Harfang Exploration or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Harfang Exploration vs. Gouverneur Bancorp
Performance |
| Timeline |
| Harfang Exploration |
| Gouverneur Bancorp |
Harfang Exploration and Gouverneur Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harfang Exploration and Gouverneur Bancorp
The main advantage of trading using opposite Harfang Exploration and Gouverneur Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harfang Exploration position performs unexpectedly, Gouverneur Bancorp 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 Gouverneur Bancorp will offset losses from the drop in Gouverneur Bancorp's long position.| Harfang Exploration vs. Rockridge Resources | Harfang Exploration vs. Ameriwest Lithium | Harfang Exploration vs. Osisko Metals Incorporated | Harfang Exploration vs. Volt Lithium Corp |
| Gouverneur Bancorp vs. Invesco High Income | Gouverneur Bancorp vs. Blackrock Muniholdings Ny | Gouverneur Bancorp vs. Nuveen California Select | Gouverneur Bancorp vs. MFS Investment Grade |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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