Correlation Between I 80 and Asante Gold
Can any of the company-specific risk be diversified away by investing in both I 80 and Asante 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 Asante 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 Asante Gold, you can compare the effects of market volatilities on I 80 and Asante 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 Asante Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Asante Gold.
Diversification Opportunities for I 80 and Asante Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IAUX and Asante is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and Asante Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asante 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 Asante Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asante Gold has no effect on the direction of I 80 i.e., I 80 and Asante Gold go up and down completely randomly.
Pair Corralation between I 80 and Asante Gold
Given the investment horizon of 90 days I 80 Gold Corp is expected to under-perform the Asante Gold. In addition to that, I 80 is 1.44 times more volatile than Asante Gold. It trades about -0.03 of its total potential returns per unit of risk. Asante Gold is currently generating about 0.0 per unit of volatility. If you would invest 107.00 in Asante Gold on August 26, 2024 and sell it today you would lose (22.00) from holding Asante Gold or give up 20.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
I 80 Gold Corp vs. Asante Gold
Performance |
| Timeline |
| I 80 Gold |
| Asante Gold |
I 80 and Asante Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and Asante Gold
The main advantage of trading using opposite I 80 and Asante Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Asante 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 Asante Gold will offset losses from the drop in Asante 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 |
| Asante Gold vs. Ascendant Resources | Asante Gold vs. Cantex Mine Development | Asante Gold vs. Amarc Resources | Asante Gold vs. Sterling 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |