Correlation Between Leviathan Gold and Magna Gold
Can any of the company-specific risk be diversified away by investing in both Leviathan Gold and Magna 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 Leviathan Gold and Magna Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leviathan Gold and Magna Gold Corp, you can compare the effects of market volatilities on Leviathan Gold and Magna 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 Leviathan Gold with a short position of Magna Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leviathan Gold and Magna Gold.
Diversification Opportunities for Leviathan Gold and Magna Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leviathan and Magna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leviathan Gold and Magna Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Gold Corp and Leviathan 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 Leviathan Gold are associated (or correlated) with Magna Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Gold Corp has no effect on the direction of Leviathan Gold i.e., Leviathan Gold and Magna Gold go up and down completely randomly.
Pair Corralation between Leviathan Gold and Magna Gold
If you would invest 13.00 in Leviathan Gold on August 29, 2024 and sell it today you would lose (7.90) from holding Leviathan Gold or give up 60.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 13.74% |
| Values | Daily Returns |
Leviathan Gold vs. Magna Gold Corp
Performance |
| Timeline |
| Leviathan Gold |
| Magna Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Leviathan Gold and Magna Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leviathan Gold and Magna Gold
The main advantage of trading using opposite Leviathan Gold and Magna Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leviathan Gold position performs unexpectedly, Magna 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 Magna Gold will offset losses from the drop in Magna Gold's long position.| Leviathan Gold vs. Montage Gold Corp | Leviathan Gold vs. KORE Mining | Leviathan Gold vs. Cabral Gold | Leviathan Gold vs. Independence Gold Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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