Correlation Between Hummingbird Resources and Bellevue Gold
Can any of the company-specific risk be diversified away by investing in both Hummingbird Resources and Bellevue 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 Hummingbird Resources and Bellevue Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hummingbird Resources PLC and Bellevue Gold Limited, you can compare the effects of market volatilities on Hummingbird Resources and Bellevue 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 Hummingbird Resources with a short position of Bellevue Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hummingbird Resources and Bellevue Gold.
Diversification Opportunities for Hummingbird Resources and Bellevue Gold
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hummingbird and Bellevue is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hummingbird Resources PLC and Bellevue Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Gold Limited and Hummingbird Resources 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 Hummingbird Resources PLC are associated (or correlated) with Bellevue Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Gold Limited has no effect on the direction of Hummingbird Resources i.e., Hummingbird Resources and Bellevue Gold go up and down completely randomly.
Pair Corralation between Hummingbird Resources and Bellevue Gold
Assuming the 90 days horizon Hummingbird Resources PLC is expected to under-perform the Bellevue Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Hummingbird Resources PLC is 7.76 times less risky than Bellevue Gold. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Bellevue Gold Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Bellevue Gold Limited on September 1, 2024 and sell it today you would lose (67.00) from holding Bellevue Gold Limited or give up 44.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Hummingbird Resources PLC vs. Bellevue Gold Limited
Performance |
| Timeline |
| Hummingbird Resources PLC |
| Bellevue Gold Limited |
Hummingbird Resources and Bellevue Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hummingbird Resources and Bellevue Gold
The main advantage of trading using opposite Hummingbird Resources and Bellevue Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hummingbird Resources position performs unexpectedly, Bellevue 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 Bellevue Gold will offset losses from the drop in Bellevue Gold's long position.| Hummingbird Resources vs. Fremont Gold | Hummingbird Resources vs. Norsemont Mining | Hummingbird Resources vs. Tudor Gold Corp | Hummingbird Resources vs. Japan Gold Corp |
| Bellevue Gold vs. Aurion Resources | Bellevue Gold vs. Rio2 Limited | Bellevue Gold vs. Palamina Corp | Bellevue Gold vs. BTU Metals 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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