Correlation Between Lumina Gold and Artemis Gold
Can any of the company-specific risk be diversified away by investing in both Lumina Gold and Artemis 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 Lumina Gold and Artemis Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumina Gold Corp and Artemis Gold, you can compare the effects of market volatilities on Lumina Gold and Artemis 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 Lumina Gold with a short position of Artemis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumina Gold and Artemis Gold.
Diversification Opportunities for Lumina Gold and Artemis Gold
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lumina and Artemis is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lumina Gold Corp and Artemis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Gold and Lumina 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 Lumina Gold Corp are associated (or correlated) with Artemis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Gold has no effect on the direction of Lumina Gold i.e., Lumina Gold and Artemis Gold go up and down completely randomly.
Pair Corralation between Lumina Gold and Artemis Gold
Assuming the 90 days horizon Lumina Gold Corp is expected to under-perform the Artemis Gold. But the stock apears to be less risky and, when comparing its historical volatility, Lumina Gold Corp is 1.5 times less risky than Artemis Gold. The stock trades about -0.02 of its potential returns per unit of risk. The Artemis Gold is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,402 in Artemis Gold on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Artemis Gold or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lumina Gold Corp vs. Artemis Gold
Performance |
| Timeline |
| Lumina Gold Corp |
| Artemis Gold |
Lumina Gold and Artemis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumina Gold and Artemis Gold
The main advantage of trading using opposite Lumina Gold and Artemis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumina Gold position performs unexpectedly, Artemis 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 Artemis Gold will offset losses from the drop in Artemis Gold's long position.| Lumina Gold vs. Bluestone Resources | Lumina Gold vs. Kore Mining | Lumina Gold vs. Torq Resources | Lumina Gold vs. Regulus Resources |
| Artemis Gold vs. Liberty Gold Corp | Artemis Gold vs. Osisko Development Corp | Artemis Gold vs. Ascot Resources | Artemis Gold vs. Equinox Gold 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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