Correlation Between SP Merval and Gold Fields
Can any of the company-specific risk be diversified away by investing in both SP Merval and Gold Fields 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 SP Merval and Gold Fields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Merval and Gold Fields Ltd, you can compare the effects of market volatilities on SP Merval and Gold Fields 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 SP Merval with a short position of Gold Fields. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Merval and Gold Fields.
Diversification Opportunities for SP Merval and Gold Fields
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MERV and Gold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SP Merval and Gold Fields Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Fields and SP Merval 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 SP Merval are associated (or correlated) with Gold Fields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Fields has no effect on the direction of SP Merval i.e., SP Merval and Gold Fields go up and down completely randomly.
Pair Corralation between SP Merval and Gold Fields
If you would invest 1,535,000 in Gold Fields Ltd on December 7, 2024 and sell it today you would earn a total of 860,000 from holding Gold Fields Ltd or generate 56.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
SP Merval vs. Gold Fields Ltd
Performance |
| Timeline |
SP Merval and Gold Fields Volatility Contrast
Predicted Return Density |
| Returns |
SP Merval
Pair trading matchups for SP Merval
Gold Fields Ltd
Pair trading matchups for Gold Fields
Pair Trading with SP Merval and Gold Fields
The main advantage of trading using opposite SP Merval and Gold Fields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Merval position performs unexpectedly, Gold Fields 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 Gold Fields will offset losses from the drop in Gold Fields' long position.| SP Merval vs. Transportadora de Gas | SP Merval vs. Verizon Communications | SP Merval vs. Harmony Gold Mining |
| Gold Fields vs. Verizon Communications | Gold Fields vs. Telecom Argentina | Gold Fields vs. Transportadora de Gas | Gold Fields vs. Compania de Transporte |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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