Correlation Between I 80 and Bluestone Resources
Can any of the company-specific risk be diversified away by investing in both I 80 and Bluestone Resources 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 Bluestone Resources 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 Bluestone Resources, you can compare the effects of market volatilities on I 80 and Bluestone Resources 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 Bluestone Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Bluestone Resources.
Diversification Opportunities for I 80 and Bluestone Resources
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IAUX and Bluestone is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and Bluestone Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluestone Resources 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 Bluestone Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluestone Resources has no effect on the direction of I 80 i.e., I 80 and Bluestone Resources go up and down completely randomly.
Pair Corralation between I 80 and Bluestone Resources
Given the investment horizon of 90 days I 80 Gold Corp is expected to under-perform the Bluestone Resources. But the stock apears to be less risky and, when comparing its historical volatility, I 80 Gold Corp is 2.02 times less risky than Bluestone Resources. The stock trades about -0.03 of its potential returns per unit of risk. The Bluestone Resources is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Bluestone Resources on August 26, 2024 and sell it today you would earn a total of 2.00 from holding Bluestone Resources or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.29% |
| Values | Daily Returns |
I 80 Gold Corp vs. Bluestone Resources
Performance |
| Timeline |
| I 80 Gold |
| Bluestone Resources |
I 80 and Bluestone Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and Bluestone Resources
The main advantage of trading using opposite I 80 and Bluestone Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Bluestone Resources 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 Bluestone Resources will offset losses from the drop in Bluestone Resources' 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 |
| Bluestone Resources vs. Norra Metals Corp | Bluestone Resources vs. ZincX Resources Corp | Bluestone Resources vs. Nuinsco Resources Limited | Bluestone Resources vs. South Star Battery |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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