Correlation Between Japan Gold and GGX Gold
Can any of the company-specific risk be diversified away by investing in both Japan Gold 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 Japan Gold and GGX Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Gold Corp and GGX Gold Corp, you can compare the effects of market volatilities on Japan Gold 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 Japan Gold with a short position of GGX Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Gold and GGX Gold.
Diversification Opportunities for Japan Gold and GGX Gold
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japan and GGX is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Japan 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 Japan 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 Japan 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 Japan Gold i.e., Japan Gold and GGX Gold go up and down completely randomly.
Pair Corralation between Japan Gold and GGX Gold
Assuming the 90 days horizon Japan Gold Corp is expected to under-perform the GGX Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Japan Gold Corp is 2.34 times less risky than GGX Gold. The otc stock trades about -0.01 of its potential returns per unit of risk. The GGX Gold Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.45 in GGX Gold Corp on August 26, 2024 and sell it today you would lose (3.63) from holding GGX Gold Corp or give up 66.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Gold Corp vs. GGX Gold Corp
Performance |
| Timeline |
| Japan Gold Corp |
| GGX Gold Corp |
Japan Gold and GGX Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Gold and GGX Gold
The main advantage of trading using opposite Japan Gold and GGX Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Gold 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.| Japan Gold vs. Aurion Resources | Japan Gold vs. Liberty Gold Corp | Japan Gold vs. Rio2 Limited | Japan Gold vs. Orezone Gold Corp |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |