Correlation Between Japan Gold and Golden Star
Can any of the company-specific risk be diversified away by investing in both Japan Gold and Golden Star 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 Golden Star 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 Golden Star Resource, you can compare the effects of market volatilities on Japan Gold and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Gold and Golden Star.
Diversification Opportunities for Japan Gold and Golden Star
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Japan and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Japan Gold Corp and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Resource has no effect on the direction of Japan Gold i.e., Japan Gold and Golden Star go up and down completely randomly.
Pair Corralation between Japan Gold and Golden Star
If you would invest 4.70 in Japan Gold Corp on November 5, 2024 and sell it today you would earn a total of 0.20 from holding Japan Gold Corp or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Japan Gold Corp vs. Golden Star Resource
Performance |
| Timeline |
| Japan Gold Corp |
| Golden Star Resource |
Japan Gold and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Gold and Golden Star
The main advantage of trading using opposite Japan Gold and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Gold position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Japan Gold vs. Robex Resources | Japan Gold vs. Rover Metals Corp | Japan Gold vs. Orefinders Resources | Japan Gold vs. Labrador Gold Corp |
| Golden Star vs. National Beverage Corp | Golden Star vs. Nascent Wine | Golden Star vs. PepsiCo | Golden Star vs. Reservoir Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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