Correlation Between Independence Gold and Asante Gold
Can any of the company-specific risk be diversified away by investing in both Independence Gold 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 Independence Gold and Asante Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Independence Gold Corp and Asante Gold, you can compare the effects of market volatilities on Independence Gold 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 Independence Gold with a short position of Asante Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and Asante Gold.
Diversification Opportunities for Independence Gold and Asante Gold
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Independence and Asante is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Independence 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 Independence Gold 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 Independence 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 Independence Gold i.e., Independence Gold and Asante Gold go up and down completely randomly.
Pair Corralation between Independence Gold and Asante Gold
Assuming the 90 days horizon Independence Gold Corp is expected to generate 14.71 times more return on investment than Asante Gold. However, Independence Gold is 14.71 times more volatile than Asante Gold. It trades about 0.05 of its potential returns per unit of risk. Asante Gold is currently generating about 0.0 per unit of risk. If you would invest 11.00 in Independence Gold Corp on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Independence Gold Corp or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Independence Gold Corp vs. Asante Gold
Performance |
| Timeline |
| Independence Gold Corp |
| Asante Gold |
Independence Gold and Asante Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Gold and Asante Gold
The main advantage of trading using opposite Independence Gold and Asante Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold 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.| Independence Gold vs. Heliostar Metals | Independence Gold vs. Revival Gold | Independence Gold vs. Cabral Gold | Independence Gold vs. Cassiar Gold Corp |
| Asante Gold vs. Advantage Solutions | Asante Gold vs. Atlas Corp | Asante Gold vs. PureCycle Technologies | Asante Gold vs. WM Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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