Correlation Between St James and Allegiant Gold
Can any of the company-specific risk be diversified away by investing in both St James and Allegiant 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 St James and Allegiant Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St James Gold and Allegiant Gold, you can compare the effects of market volatilities on St James and Allegiant 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 St James with a short position of Allegiant Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of St James and Allegiant Gold.
Diversification Opportunities for St James and Allegiant Gold
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LRDJF and Allegiant is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding St James Gold and Allegiant Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Gold and St James 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 St James Gold are associated (or correlated) with Allegiant Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Gold has no effect on the direction of St James i.e., St James and Allegiant Gold go up and down completely randomly.
Pair Corralation between St James and Allegiant Gold
Assuming the 90 days horizon St James Gold is expected to generate 1.24 times more return on investment than Allegiant Gold. However, St James is 1.24 times more volatile than Allegiant Gold. It trades about 0.03 of its potential returns per unit of risk. Allegiant Gold is currently generating about -0.12 per unit of risk. If you would invest 7.44 in St James Gold on September 12, 2024 and sell it today you would lose (0.24) from holding St James Gold or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
St James Gold vs. Allegiant Gold
Performance |
| Timeline |
| St James Gold |
| Allegiant Gold |
St James and Allegiant Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St James and Allegiant Gold
The main advantage of trading using opposite St James and Allegiant Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St James position performs unexpectedly, Allegiant 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 Allegiant Gold will offset losses from the drop in Allegiant Gold's long position.| St James vs. Puma Exploration | St James vs. Sixty North Gold | St James vs. Red Pine Exploration | St James vs. Grande Portage Resources |
| Allegiant Gold vs. Advantage Solutions | Allegiant Gold vs. Atlas Corp | Allegiant Gold vs. PureCycle Technologies | Allegiant Gold vs. WM Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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