Correlation Between Hummingbird Resources and Marathon Gold
Can any of the company-specific risk be diversified away by investing in both Hummingbird Resources and Marathon 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 Marathon 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 Marathon Gold, you can compare the effects of market volatilities on Hummingbird Resources and Marathon 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 Marathon Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hummingbird Resources and Marathon Gold.
Diversification Opportunities for Hummingbird Resources and Marathon Gold
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hummingbird and Marathon is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hummingbird Resources PLC and Marathon Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Gold 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 Marathon Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Gold has no effect on the direction of Hummingbird Resources i.e., Hummingbird Resources and Marathon Gold go up and down completely randomly.
Pair Corralation between Hummingbird Resources and Marathon Gold
If you would invest 64.00 in Marathon Gold on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Marathon Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hummingbird Resources PLC vs. Marathon Gold
Performance |
| Timeline |
| Hummingbird Resources PLC |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hummingbird Resources and Marathon Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hummingbird Resources and Marathon Gold
The main advantage of trading using opposite Hummingbird Resources and Marathon Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hummingbird Resources position performs unexpectedly, Marathon 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 Marathon Gold will offset losses from the drop in Marathon Gold's long position.| Hummingbird Resources vs. Vertiv Holdings Co | Hummingbird Resources vs. Nasdaq Inc | Hummingbird Resources vs. McDonalds | Hummingbird Resources vs. Walmart |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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