Correlation Between Mako Mining and Golden Star
Can any of the company-specific risk be diversified away by investing in both Mako Mining and Golden Star 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 Mako Mining and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Golden Star Resource, you can compare the effects of market volatilities on Mako Mining and Golden Star 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 Mako Mining with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Golden Star.
Diversification Opportunities for Mako Mining and Golden Star
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mako and Golden is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource and Mako Mining 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 Mako Mining Corp are associated (or correlated) with Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Resource has no effect on the direction of Mako Mining i.e., Mako Mining and Golden Star go up and down completely randomly.
Pair Corralation between Mako Mining and Golden Star
Assuming the 90 days horizon Mako Mining Corp is expected to generate 0.24 times more return on investment than Golden Star. However, Mako Mining Corp is 4.22 times less risky than Golden Star. It trades about 0.26 of its potential returns per unit of risk. Golden Star Resource is currently generating about -0.22 per unit of risk. If you would invest 259.00 in Mako Mining Corp on November 27, 2024 and sell it today you would earn a total of 24.00 from holding Mako Mining Corp or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mako Mining Corp vs. Golden Star Resource
Performance |
| Timeline |
| Mako Mining Corp |
| Golden Star Resource |
Mako Mining and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Golden Star
The main advantage of trading using opposite Mako Mining and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Mako Mining vs. Labrador Gold Corp | Mako Mining vs. Exploits Discovery Corp | Mako Mining vs. Puma Exploration | Mako Mining vs. White Gold Corp |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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