Correlation Between Moneta Gold and Argo Gold
Can any of the company-specific risk be diversified away by investing in both Moneta Gold and Argo 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 Moneta Gold and Argo Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moneta Gold and Argo Gold, you can compare the effects of market volatilities on Moneta Gold and Argo 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 Moneta Gold with a short position of Argo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneta Gold and Argo Gold.
Diversification Opportunities for Moneta Gold and Argo Gold
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Moneta and Argo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Gold and Argo Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Gold and Moneta Gold 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 Moneta Gold are associated (or correlated) with Argo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Gold has no effect on the direction of Moneta Gold i.e., Moneta Gold and Argo Gold go up and down completely randomly.
Pair Corralation between Moneta Gold and Argo Gold
If you would invest 5.30 in Argo Gold on September 13, 2024 and sell it today you would earn a total of 0.40 from holding Argo Gold or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Moneta Gold vs. Argo Gold
Performance |
| Timeline |
| Moneta Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Argo Gold |
Moneta Gold and Argo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneta Gold and Argo Gold
The main advantage of trading using opposite Moneta Gold and Argo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneta Gold position performs unexpectedly, Argo 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 Argo Gold will offset losses from the drop in Argo Gold's long position.| Moneta Gold vs. Liberty Gold Corp | Moneta Gold vs. Lion One Metals | Moneta Gold vs. Galane Gold | Moneta Gold vs. Fortuna Silver Mines |
| Argo Gold vs. Blue Star Gold | Argo Gold vs. Angkor Resources Corp | Argo Gold vs. Advance Gold Corp | Argo Gold vs. Advance United Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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