Correlation Between Independence Gold and Brunswick Exploration
Can any of the company-specific risk be diversified away by investing in both Independence Gold and Brunswick Exploration 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 Brunswick Exploration 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 Brunswick Exploration, you can compare the effects of market volatilities on Independence Gold and Brunswick Exploration 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 Brunswick Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and Brunswick Exploration.
Diversification Opportunities for Independence Gold and Brunswick Exploration
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Independence and Brunswick is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Independence Gold Corp and Brunswick Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick Exploration 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 Brunswick Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick Exploration has no effect on the direction of Independence Gold i.e., Independence Gold and Brunswick Exploration go up and down completely randomly.
Pair Corralation between Independence Gold and Brunswick Exploration
Assuming the 90 days horizon Independence Gold Corp is expected to generate 7.93 times more return on investment than Brunswick Exploration. However, Independence Gold is 7.93 times more volatile than Brunswick Exploration. It trades about 0.05 of its potential returns per unit of risk. Brunswick Exploration is currently generating about -0.05 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Independence Gold Corp vs. Brunswick Exploration
Performance |
| Timeline |
| Independence Gold Corp |
| Brunswick Exploration |
Independence Gold and Brunswick Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Gold and Brunswick Exploration
The main advantage of trading using opposite Independence Gold and Brunswick Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold position performs unexpectedly, Brunswick Exploration 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 Brunswick Exploration will offset losses from the drop in Brunswick Exploration's long position.| Independence Gold vs. Heliostar Metals | Independence Gold vs. Revival Gold | Independence Gold vs. Cabral Gold | Independence Gold vs. Cassiar Gold Corp |
| Brunswick Exploration vs. Heliostar Metals | Brunswick Exploration vs. Independence Gold Corp | Brunswick Exploration vs. Westward Gold | Brunswick Exploration vs. Snowline 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |