Correlation Between Leocor Gold and AbraSilver Resource
Can any of the company-specific risk be diversified away by investing in both Leocor Gold and AbraSilver Resource 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 Leocor Gold and AbraSilver Resource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leocor Gold and AbraSilver Resource Corp, you can compare the effects of market volatilities on Leocor Gold and AbraSilver Resource 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 Leocor Gold with a short position of AbraSilver Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leocor Gold and AbraSilver Resource.
Diversification Opportunities for Leocor Gold and AbraSilver Resource
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Leocor and AbraSilver is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Leocor Gold and AbraSilver Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AbraSilver Resource Corp and Leocor 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 Leocor Gold are associated (or correlated) with AbraSilver Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AbraSilver Resource Corp has no effect on the direction of Leocor Gold i.e., Leocor Gold and AbraSilver Resource go up and down completely randomly.
Pair Corralation between Leocor Gold and AbraSilver Resource
Assuming the 90 days horizon Leocor Gold is expected to generate 2.54 times more return on investment than AbraSilver Resource. However, Leocor Gold is 2.54 times more volatile than AbraSilver Resource Corp. It trades about 0.06 of its potential returns per unit of risk. AbraSilver Resource Corp is currently generating about 0.03 per unit of risk. If you would invest 6.00 in Leocor Gold on November 3, 2024 and sell it today you would earn a total of 1.17 from holding Leocor Gold or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Leocor Gold vs. AbraSilver Resource Corp
Performance |
| Timeline |
| Leocor Gold |
| AbraSilver Resource Corp |
Leocor Gold and AbraSilver Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leocor Gold and AbraSilver Resource
The main advantage of trading using opposite Leocor Gold and AbraSilver Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leocor Gold position performs unexpectedly, AbraSilver Resource 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 AbraSilver Resource will offset losses from the drop in AbraSilver Resource's long position.| Leocor Gold vs. Silver Wolf Exploration | Leocor Gold vs. Monumental Minerals Corp | Leocor Gold vs. Riverside Resources | Leocor Gold vs. Azucar Minerals |
| AbraSilver Resource vs. Defiance Silver Corp | AbraSilver Resource vs. Metallic Minerals Corp | AbraSilver Resource vs. Summa Silver Corp | AbraSilver Resource vs. Honey Badger Silver |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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