Correlation Between Hummingbird Resources and Contact Gold
Can any of the company-specific risk be diversified away by investing in both Hummingbird Resources and Contact 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 Contact 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 Contact Gold Corp, you can compare the effects of market volatilities on Hummingbird Resources and Contact 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 Contact Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hummingbird Resources and Contact Gold.
Diversification Opportunities for Hummingbird Resources and Contact Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hummingbird and Contact is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hummingbird Resources PLC and Contact Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contact Gold Corp 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 Contact Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contact Gold Corp has no effect on the direction of Hummingbird Resources i.e., Hummingbird Resources and Contact Gold go up and down completely randomly.
Pair Corralation between Hummingbird Resources and Contact Gold
If you would invest 11.00 in Hummingbird Resources PLC on November 3, 2024 and sell it today you would lose (7.80) from holding Hummingbird Resources PLC or give up 70.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Hummingbird Resources PLC vs. Contact Gold Corp
Performance |
| Timeline |
| Hummingbird Resources PLC |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hummingbird Resources and Contact Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hummingbird Resources and Contact Gold
The main advantage of trading using opposite Hummingbird Resources and Contact Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hummingbird Resources position performs unexpectedly, Contact 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 Contact Gold will offset losses from the drop in Contact 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 |
| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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