Correlation Between Maritime Resources and Signal Gold
Can any of the company-specific risk be diversified away by investing in both Maritime Resources and Signal 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 Maritime Resources and Signal Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maritime Resources Corp and Signal Gold, you can compare the effects of market volatilities on Maritime Resources and Signal 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 Maritime Resources with a short position of Signal Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maritime Resources and Signal Gold.
Diversification Opportunities for Maritime Resources and Signal Gold
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maritime and Signal is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Maritime Resources Corp and Signal Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signal Gold and Maritime Resources 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 Maritime Resources Corp are associated (or correlated) with Signal Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signal Gold has no effect on the direction of Maritime Resources i.e., Maritime Resources and Signal Gold go up and down completely randomly.
Pair Corralation between Maritime Resources and Signal Gold
Assuming the 90 days horizon Maritime Resources Corp is expected to generate 1.34 times more return on investment than Signal Gold. However, Maritime Resources is 1.34 times more volatile than Signal Gold. It trades about 0.05 of its potential returns per unit of risk. Signal Gold is currently generating about -0.04 per unit of risk. If you would invest 4.00 in Maritime Resources Corp on August 31, 2024 and sell it today you would earn a total of 1.50 from holding Maritime Resources Corp or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maritime Resources Corp vs. Signal Gold
Performance |
| Timeline |
| Maritime Resources Corp |
| Signal Gold |
Maritime Resources and Signal Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maritime Resources and Signal Gold
The main advantage of trading using opposite Maritime Resources and Signal Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maritime Resources position performs unexpectedly, Signal 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 Signal Gold will offset losses from the drop in Signal Gold's long position.| Maritime Resources vs. Solar Alliance Energy | Maritime Resources vs. Global X Active | Maritime Resources vs. Financial 15 Split | Maritime Resources vs. Rubicon Organics |
| Signal Gold vs. Montage Gold Corp | Signal Gold vs. Cerrado Gold Corp | Signal Gold vs. Steppe Gold | Signal Gold vs. Maritime Resources 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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