Correlation Between Minera Alamos and Grande Portage
Can any of the company-specific risk be diversified away by investing in both Minera Alamos and Grande Portage 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 Grande Portage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minera Alamos and Grande Portage Resources, you can compare the effects of market volatilities on Minera Alamos and Grande Portage 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 Grande Portage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minera Alamos and Grande Portage.
Diversification Opportunities for Minera Alamos and Grande Portage
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Minera and Grande is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Minera Alamos and Grande Portage Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Portage Resources 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 Grande Portage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Portage Resources has no effect on the direction of Minera Alamos i.e., Minera Alamos and Grande Portage go up and down completely randomly.
Pair Corralation between Minera Alamos and Grande Portage
Assuming the 90 days horizon Minera Alamos is expected to generate 12.79 times less return on investment than Grande Portage. But when comparing it to its historical volatility, Minera Alamos is 1.71 times less risky than Grande Portage. It trades about 0.0 of its potential returns per unit of risk. Grande Portage Resources is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Grande Portage Resources on September 14, 2024 and sell it today you would lose (3.00) from holding Grande Portage Resources or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minera Alamos vs. Grande Portage Resources
Performance |
| Timeline |
| Minera Alamos |
| Grande Portage Resources |
Minera Alamos and Grande Portage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minera Alamos and Grande Portage
The main advantage of trading using opposite Minera Alamos and Grande Portage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minera Alamos position performs unexpectedly, Grande Portage 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 Grande Portage will offset losses from the drop in Grande Portage's long position.| Minera Alamos vs. Aurion Resources | Minera Alamos vs. Minaurum Gold | Minera Alamos vs. Rio2 Limited | Minera Alamos vs. Roscan Gold Corp |
| Grande Portage vs. Puma Exploration | Grande Portage vs. Sixty North Gold | Grande Portage vs. Red Pine Exploration | Grande Portage vs. Altamira 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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