Correlation Between Jubilee Metals and Golden Goliath
Can any of the company-specific risk be diversified away by investing in both Jubilee Metals and Golden Goliath 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 Jubilee Metals and Golden Goliath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jubilee Metals Group and Golden Goliath Resources, you can compare the effects of market volatilities on Jubilee Metals and Golden Goliath 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 Jubilee Metals with a short position of Golden Goliath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Metals and Golden Goliath.
Diversification Opportunities for Jubilee Metals and Golden Goliath
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jubilee and Golden is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Metals Group and Golden Goliath Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Goliath Resources and Jubilee Metals 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 Jubilee Metals Group are associated (or correlated) with Golden Goliath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Goliath Resources has no effect on the direction of Jubilee Metals i.e., Jubilee Metals and Golden Goliath go up and down completely randomly.
Pair Corralation between Jubilee Metals and Golden Goliath
Assuming the 90 days horizon Jubilee Metals Group is expected to under-perform the Golden Goliath. But the pink sheet apears to be less risky and, when comparing its historical volatility, Jubilee Metals Group is 11.82 times less risky than Golden Goliath. The pink sheet trades about -0.14 of its potential returns per unit of risk. The Golden Goliath Resources is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Golden Goliath Resources on September 13, 2024 and sell it today you would lose (1.25) from holding Golden Goliath Resources or give up 41.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jubilee Metals Group vs. Golden Goliath Resources
Performance |
| Timeline |
| Jubilee Metals Group |
| Golden Goliath Resources |
Jubilee Metals and Golden Goliath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilee Metals and Golden Goliath
The main advantage of trading using opposite Jubilee Metals and Golden Goliath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilee Metals position performs unexpectedly, Golden Goliath 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 Goliath will offset losses from the drop in Golden Goliath's long position.The idea behind Jubilee Metals Group and Golden Goliath Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Golden Goliath vs. Qubec Nickel Corp | Golden Goliath vs. IGO Limited | Golden Goliath vs. Focus Graphite | Golden Goliath vs. Mineral Res |
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.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |