Correlation Between Independence Gold and Minaurum Gold
Can any of the company-specific risk be diversified away by investing in both Independence Gold and Minaurum 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 Minaurum 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 Minaurum Gold, you can compare the effects of market volatilities on Independence Gold and Minaurum 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 Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and Minaurum Gold.
Diversification Opportunities for Independence Gold and Minaurum Gold
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Independence and Minaurum is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Independence Gold Corp and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum 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 Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Independence Gold i.e., Independence Gold and Minaurum Gold go up and down completely randomly.
Pair Corralation between Independence Gold and Minaurum Gold
Assuming the 90 days horizon Independence Gold is expected to generate 1.18 times less return on investment than Minaurum Gold. But when comparing it to its historical volatility, Independence Gold Corp is 1.17 times less risky than Minaurum Gold. It trades about 0.03 of its potential returns per unit of risk. Minaurum Gold is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Minaurum Gold on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Minaurum Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Independence Gold Corp vs. Minaurum Gold
Performance |
| Timeline |
| Independence Gold Corp |
| Minaurum Gold |
Independence Gold and Minaurum Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Gold and Minaurum Gold
The main advantage of trading using opposite Independence Gold and Minaurum Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold position performs unexpectedly, Minaurum 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 Minaurum Gold will offset losses from the drop in Minaurum Gold's long position.| Independence Gold vs. Kesselrun Resources | Independence Gold vs. Altiplano Metals | Independence Gold vs. Rockhaven Resources | Independence Gold vs. Magnum Goldcorp |
| Minaurum Gold vs. Defiance Silver Corp | Minaurum Gold vs. Altiplano Metals | Minaurum Gold vs. Independence Gold Corp | Minaurum Gold vs. Galway Metals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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