Correlation Between Independence Gold and Benton Resources
Can any of the company-specific risk be diversified away by investing in both Independence Gold and Benton 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 Independence Gold and Benton Resources 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 Benton Resources, you can compare the effects of market volatilities on Independence Gold and Benton 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 Independence Gold with a short position of Benton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and Benton Resources.
Diversification Opportunities for Independence Gold and Benton Resources
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Independence and Benton is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Independence Gold Corp and Benton Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benton Resources 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 Benton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benton Resources has no effect on the direction of Independence Gold i.e., Independence Gold and Benton Resources go up and down completely randomly.
Pair Corralation between Independence Gold and Benton Resources
Assuming the 90 days horizon Independence Gold Corp is expected to under-perform the Benton Resources. But the stock apears to be less risky and, when comparing its historical volatility, Independence Gold Corp is 1.49 times less risky than Benton Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Benton Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Benton Resources on November 28, 2024 and sell it today you would lose (0.50) from holding Benton Resources or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Independence Gold Corp vs. Benton Resources
Performance |
| Timeline |
| Independence Gold Corp |
| Benton Resources |
Independence Gold and Benton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Gold and Benton Resources
The main advantage of trading using opposite Independence Gold and Benton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold position performs unexpectedly, Benton 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 Benton Resources will offset losses from the drop in Benton Resources' long position.| Independence Gold vs. Kesselrun Resources | Independence Gold vs. Altiplano Metals | Independence Gold vs. Rockhaven Resources | Independence Gold vs. Magnum Goldcorp |
| Benton Resources vs. Avrupa Minerals | Benton Resources vs. Maritime Resources Corp | Benton Resources vs. Chibougamau Independent Mines | Benton Resources vs. Angkor Resources 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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