Correlation Between Moneta Gold and GGX Gold
Can any of the company-specific risk be diversified away by investing in both Moneta Gold and GGX 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 GGX 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 GGX Gold Corp, you can compare the effects of market volatilities on Moneta Gold and GGX 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 GGX Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneta Gold and GGX Gold.
Diversification Opportunities for Moneta Gold and GGX Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Moneta and GGX is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Gold and GGX Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GGX Gold 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 GGX Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GGX Gold Corp has no effect on the direction of Moneta Gold i.e., Moneta Gold and GGX Gold go up and down completely randomly.
Pair Corralation between Moneta Gold and GGX Gold
If you would invest 3.21 in GGX Gold Corp on August 25, 2024 and sell it today you would lose (1.39) from holding GGX Gold Corp or give up 43.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Moneta Gold vs. GGX Gold Corp
Performance |
| Timeline |
| Moneta Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GGX Gold Corp |
Moneta Gold and GGX Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneta Gold and GGX Gold
The main advantage of trading using opposite Moneta Gold and GGX Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneta Gold position performs unexpectedly, GGX 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 GGX Gold will offset losses from the drop in GGX 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 |
| GGX Gold vs. Aurion Resources | GGX Gold vs. Liberty Gold Corp | GGX Gold vs. Rio2 Limited | GGX Gold vs. Orezone 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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