Correlation Between Moneta Gold and BTU Metals
Can any of the company-specific risk be diversified away by investing in both Moneta Gold and BTU Metals 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 BTU Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moneta Gold and BTU Metals Corp, you can compare the effects of market volatilities on Moneta Gold and BTU Metals 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 BTU Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneta Gold and BTU Metals.
Diversification Opportunities for Moneta Gold and BTU Metals
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Moneta and BTU is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Gold and BTU Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTU Metals Corp 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 BTU Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTU Metals Corp has no effect on the direction of Moneta Gold i.e., Moneta Gold and BTU Metals go up and down completely randomly.
Pair Corralation between Moneta Gold and BTU Metals
If you would invest 1.91 in BTU Metals Corp on August 29, 2024 and sell it today you would earn a total of 0.14 from holding BTU Metals Corp or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Moneta Gold vs. BTU Metals Corp
Performance |
| Timeline |
| Moneta Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BTU Metals Corp |
Moneta Gold and BTU Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneta Gold and BTU Metals
The main advantage of trading using opposite Moneta Gold and BTU Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneta Gold position performs unexpectedly, BTU Metals 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 BTU Metals will offset losses from the drop in BTU Metals' 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 |
| BTU Metals vs. Aurion Resources | BTU Metals vs. Liberty Gold Corp | BTU Metals vs. Orezone Gold Corp | BTU Metals vs. Fortuna Silver Mines |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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