Correlation Between I 80 and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both I 80 and Antioquia 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 I 80 and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I 80 Gold Corp and Antioquia Gold, you can compare the effects of market volatilities on I 80 and Antioquia 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 I 80 with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Antioquia Gold.
Diversification Opportunities for I 80 and Antioquia Gold
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IAUX and Antioquia is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold and I 80 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 I 80 Gold Corp are associated (or correlated) with Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of I 80 i.e., I 80 and Antioquia Gold go up and down completely randomly.
Pair Corralation between I 80 and Antioquia Gold
Given the investment horizon of 90 days I 80 Gold Corp is expected to under-perform the Antioquia Gold. But the stock apears to be less risky and, when comparing its historical volatility, I 80 Gold Corp is 1.36 times less risky than Antioquia Gold. The stock trades about -0.04 of its potential returns per unit of risk. The Antioquia Gold is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Antioquia Gold on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
I 80 Gold Corp vs. Antioquia Gold
Performance |
| Timeline |
| I 80 Gold |
| Antioquia Gold |
I 80 and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and Antioquia Gold
The main advantage of trading using opposite I 80 and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Antioquia 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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