Correlation Between Minera Alamos and Minaurum Gold
Can any of the company-specific risk be diversified away by investing in both Minera Alamos and Minaurum 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 Minaurum 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 Minaurum Gold, you can compare the effects of market volatilities on Minera Alamos and Minaurum 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 Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minera Alamos and Minaurum Gold.
Diversification Opportunities for Minera Alamos and Minaurum Gold
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Minera and Minaurum is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Minera Alamos and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum 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 Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Minera Alamos i.e., Minera Alamos and Minaurum Gold go up and down completely randomly.
Pair Corralation between Minera Alamos and Minaurum Gold
Assuming the 90 days horizon Minera Alamos is expected to generate 0.75 times more return on investment than Minaurum Gold. However, Minera Alamos is 1.33 times less risky than Minaurum Gold. It trades about 0.18 of its potential returns per unit of risk. Minaurum Gold is currently generating about 0.03 per unit of risk. If you would invest 19.00 in Minera Alamos on November 4, 2024 and sell it today you would earn a total of 3.00 from holding Minera Alamos or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minera Alamos vs. Minaurum Gold
Performance |
| Timeline |
| Minera Alamos |
| Minaurum Gold |
Minera Alamos and Minaurum Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minera Alamos and Minaurum Gold
The main advantage of trading using opposite Minera Alamos and Minaurum Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minera Alamos position performs unexpectedly, Minaurum 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 Minaurum Gold will offset losses from the drop in Minaurum 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 |
| Minaurum Gold vs. Rio2 Limited | Minaurum Gold vs. Aurion Resources | Minaurum Gold vs. Norsemont Mining | Minaurum Gold vs. Vior Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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