Correlation Between I 80 and GGX Gold
Can any of the company-specific risk be diversified away by investing in both I 80 and GGX 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 GGX 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 GGX Gold Corp, you can compare the effects of market volatilities on I 80 and GGX 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 GGX Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and GGX Gold.
Diversification Opportunities for I 80 and GGX Gold
Significant diversification
The 3 months correlation between IAUX and GGX is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and GGX Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GGX 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 GGX Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GGX Gold Corp has no effect on the direction of I 80 i.e., I 80 and GGX Gold go up and down completely randomly.
Pair Corralation between I 80 and GGX Gold
Given the investment horizon of 90 days I 80 Gold Corp is expected to under-perform the GGX Gold. But the stock apears to be less risky and, when comparing its historical volatility, I 80 Gold Corp is 3.22 times less risky than GGX Gold. The stock trades about -0.03 of its potential returns per unit of risk. The GGX Gold Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.32 in GGX Gold Corp on August 25, 2024 and sell it today you would earn a total of 0.50 from holding GGX Gold Corp or generate 37.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
I 80 Gold Corp vs. GGX Gold Corp
Performance |
| Timeline |
| I 80 Gold |
| GGX Gold Corp |
I 80 and GGX Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and GGX Gold
The main advantage of trading using opposite I 80 and GGX Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, GGX 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 GGX Gold will offset losses from the drop in GGX 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 |
| GGX Gold vs. Aurion Resources | GGX Gold vs. Liberty Gold Corp | GGX Gold vs. Rio2 Limited | GGX Gold vs. Orezone 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |