Correlation Between Minera Alamos and White Gold
Can any of the company-specific risk be diversified away by investing in both Minera Alamos and White 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 White 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 White Gold Corp, you can compare the effects of market volatilities on Minera Alamos and White 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 White Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minera Alamos and White Gold.
Diversification Opportunities for Minera Alamos and White Gold
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Minera and White is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Minera Alamos and White Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on White Gold Corp 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 White Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of White Gold Corp has no effect on the direction of Minera Alamos i.e., Minera Alamos and White Gold go up and down completely randomly.
Pair Corralation between Minera Alamos and White Gold
Assuming the 90 days horizon Minera Alamos is expected to generate 3.29 times less return on investment than White Gold. But when comparing it to its historical volatility, Minera Alamos is 1.33 times less risky than White Gold. It trades about 0.0 of its potential returns per unit of risk. White Gold Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 21.00 in White Gold Corp on September 14, 2024 and sell it today you would lose (5.00) from holding White Gold Corp or give up 23.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minera Alamos vs. White Gold Corp
Performance |
| Timeline |
| Minera Alamos |
| White Gold Corp |
Minera Alamos and White Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minera Alamos and White Gold
The main advantage of trading using opposite Minera Alamos and White Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minera Alamos position performs unexpectedly, White 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 White Gold will offset losses from the drop in White 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 |
| White Gold vs. Puma Exploration | White Gold vs. Endurance Gold | White Gold vs. Grande Portage Resources | White Gold 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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