Correlation Between Klondike Silver and Golden Goliath
Can any of the company-specific risk be diversified away by investing in both Klondike Silver 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 Klondike Silver and Golden Goliath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klondike Silver Corp and Golden Goliath Resources, you can compare the effects of market volatilities on Klondike Silver 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 Klondike Silver with a short position of Golden Goliath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klondike Silver and Golden Goliath.
Diversification Opportunities for Klondike Silver and Golden Goliath
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Klondike and Golden is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Klondike Silver Corp 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 Klondike Silver 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 Klondike Silver Corp 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 Klondike Silver i.e., Klondike Silver and Golden Goliath go up and down completely randomly.
Pair Corralation between Klondike Silver and Golden Goliath
Given the investment horizon of 90 days Klondike Silver Corp is expected to generate 1.03 times more return on investment than Golden Goliath. However, Klondike Silver is 1.03 times more volatile than Golden Goliath Resources. It trades about 0.05 of its potential returns per unit of risk. Golden Goliath Resources is currently generating about 0.03 per unit of risk. If you would invest 4.50 in Klondike Silver Corp on November 27, 2024 and sell it today you would lose (1.00) from holding Klondike Silver Corp or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Klondike Silver Corp vs. Golden Goliath Resources
Performance |
| Timeline |
| Klondike Silver Corp |
| Golden Goliath Resources |
Klondike Silver and Golden Goliath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klondike Silver and Golden Goliath
The main advantage of trading using opposite Klondike Silver and Golden Goliath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klondike Silver 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.| Klondike Silver vs. Silver Grail Resources | Klondike Silver vs. Monarca Minerals | Klondike Silver vs. Gold79 Mines | Klondike Silver vs. Klondike Gold Corp |
| Golden Goliath vs. Minera Alamos | Golden Goliath vs. Klondike Gold Corp | Golden Goliath vs. Metallic Minerals Corp | Golden Goliath vs. Teuton 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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