Correlation Between I 80 and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both I 80 and Cassiar 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 Cassiar 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 Cassiar Gold Corp, you can compare the effects of market volatilities on I 80 and Cassiar 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 Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Cassiar Gold.
Diversification Opportunities for I 80 and Cassiar Gold
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IAUX and Cassiar is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp 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 Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of I 80 i.e., I 80 and Cassiar Gold go up and down completely randomly.
Pair Corralation between I 80 and Cassiar Gold
Given the investment horizon of 90 days I 80 Gold Corp is expected to under-perform the Cassiar Gold. In addition to that, I 80 is 1.2 times more volatile than Cassiar Gold Corp. It trades about -0.01 of its total potential returns per unit of risk. Cassiar Gold Corp is currently generating about 0.01 per unit of volatility. If you would invest 19.00 in Cassiar Gold Corp on September 1, 2024 and sell it today you would lose (3.00) from holding Cassiar Gold Corp or give up 15.79% 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. Cassiar Gold Corp
Performance |
| Timeline |
| I 80 Gold |
| Cassiar Gold Corp |
I 80 and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and Cassiar Gold
The main advantage of trading using opposite I 80 and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar 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 |
| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival Gold |
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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