Correlation Between Minera Alamos and Cabral Gold
Can any of the company-specific risk be diversified away by investing in both Minera Alamos and Cabral 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 Minera Alamos and Cabral Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minera Alamos and Cabral Gold, you can compare the effects of market volatilities on Minera Alamos and Cabral 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 Minera Alamos with a short position of Cabral Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minera Alamos and Cabral Gold.
Diversification Opportunities for Minera Alamos and Cabral Gold
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Minera and Cabral is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Minera Alamos and Cabral Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabral Gold and Minera Alamos 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 Minera Alamos are associated (or correlated) with Cabral Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabral Gold has no effect on the direction of Minera Alamos i.e., Minera Alamos and Cabral Gold go up and down completely randomly.
Pair Corralation between Minera Alamos and Cabral Gold
Assuming the 90 days horizon Minera Alamos is expected to under-perform the Cabral Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Minera Alamos is 2.3 times less risky than Cabral Gold. The otc stock trades about -0.27 of its potential returns per unit of risk. The Cabral Gold is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Cabral Gold on August 26, 2024 and sell it today you would lose (3.00) from holding Cabral Gold or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minera Alamos vs. Cabral Gold
Performance |
| Timeline |
| Minera Alamos |
| Cabral Gold |
Minera Alamos and Cabral Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minera Alamos and Cabral Gold
The main advantage of trading using opposite Minera Alamos and Cabral Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minera Alamos position performs unexpectedly, Cabral 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 Cabral Gold will offset losses from the drop in Cabral Gold's long position.| Minera Alamos vs. Aurion Resources | Minera Alamos vs. Minaurum Gold | Minera Alamos vs. Rio2 Limited | Minera Alamos vs. Roscan Gold Corp |
| Cabral Gold vs. Aurion Resources | Cabral Gold vs. Liberty Gold Corp | Cabral Gold vs. Orezone Gold Corp | Cabral Gold vs. Radisson Mining Resources |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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