Correlation Between Loncor Gold and GGX Gold
Can any of the company-specific risk be diversified away by investing in both Loncor 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 Loncor 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 Loncor Gold and GGX Gold Corp, you can compare the effects of market volatilities on Loncor 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 Loncor Gold with a short position of GGX Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loncor Gold and GGX Gold.
Diversification Opportunities for Loncor Gold and GGX Gold
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Loncor and GGX is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Loncor Gold 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 Loncor 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 Loncor Gold 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 Loncor Gold i.e., Loncor Gold and GGX Gold go up and down completely randomly.
Pair Corralation between Loncor Gold and GGX Gold
If you would invest 4.40 in GGX Gold Corp on August 29, 2024 and sell it today you would lose (3.15) from holding GGX Gold Corp or give up 71.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.34% |
| Values | Daily Returns |
Loncor Gold vs. GGX Gold Corp
Performance |
| Timeline |
| Loncor Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GGX Gold Corp |
Loncor Gold and GGX Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loncor Gold and GGX Gold
The main advantage of trading using opposite Loncor Gold and GGX Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loncor 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.| Loncor Gold vs. Galiano Gold | Loncor Gold vs. Brunswick Exploration | Loncor Gold vs. B2Gold Corp | Loncor Gold vs. Japan Gold Corp |
| GGX Gold vs. GFG Resources | GGX Gold vs. Klondike Gold Corp | GGX Gold vs. Jaguar Mining | GGX Gold vs. Marvel Gold Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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