Correlation Between Lupaka Gold and Asiabasemetals
Can any of the company-specific risk be diversified away by investing in both Lupaka Gold and Asiabasemetals 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 Lupaka Gold and Asiabasemetals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lupaka Gold Corp and Asiabasemetals, you can compare the effects of market volatilities on Lupaka Gold and Asiabasemetals 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 Lupaka Gold with a short position of Asiabasemetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lupaka Gold and Asiabasemetals.
Diversification Opportunities for Lupaka Gold and Asiabasemetals
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lupaka and Asiabasemetals is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lupaka Gold Corp and Asiabasemetals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiabasemetals and Lupaka 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 Lupaka Gold Corp are associated (or correlated) with Asiabasemetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiabasemetals has no effect on the direction of Lupaka Gold i.e., Lupaka Gold and Asiabasemetals go up and down completely randomly.
Pair Corralation between Lupaka Gold and Asiabasemetals
Assuming the 90 days horizon Lupaka Gold Corp is expected to generate 1.21 times more return on investment than Asiabasemetals. However, Lupaka Gold is 1.21 times more volatile than Asiabasemetals. It trades about 0.03 of its potential returns per unit of risk. Asiabasemetals is currently generating about 0.01 per unit of risk. If you would invest 8.00 in Lupaka Gold Corp on August 28, 2024 and sell it today you would lose (2.00) from holding Lupaka Gold Corp or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lupaka Gold Corp vs. Asiabasemetals
Performance |
| Timeline |
| Lupaka Gold Corp |
| Asiabasemetals |
Lupaka Gold and Asiabasemetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lupaka Gold and Asiabasemetals
The main advantage of trading using opposite Lupaka Gold and Asiabasemetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lupaka Gold position performs unexpectedly, Asiabasemetals 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 Asiabasemetals will offset losses from the drop in Asiabasemetals' long position.| Lupaka Gold vs. Brookfield Investments | Lupaka Gold vs. Ramp Metals | Lupaka Gold vs. Bip Investment Corp | Lupaka Gold vs. Canadian General Investments |
| Asiabasemetals vs. First Majestic Silver | Asiabasemetals vs. Ivanhoe Energy | Asiabasemetals vs. Orezone Gold Corp | Asiabasemetals vs. Faraday Copper 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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