Correlation Between Mayfair Gold and Global Net
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold and Global Net 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 Mayfair Gold and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and Global Net Lease, you can compare the effects of market volatilities on Mayfair Gold and Global Net 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 Mayfair Gold with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and Global Net.
Diversification Opportunities for Mayfair Gold and Global Net
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mayfair and Global is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Mayfair 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 Mayfair Gold Corp are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Mayfair Gold i.e., Mayfair Gold and Global Net go up and down completely randomly.
Pair Corralation between Mayfair Gold and Global Net
Assuming the 90 days horizon Mayfair Gold Corp is expected to under-perform the Global Net. In addition to that, Mayfair Gold is 1.57 times more volatile than Global Net Lease. It trades about -0.39 of its total potential returns per unit of risk. Global Net Lease is currently generating about -0.02 per unit of volatility. If you would invest 2,291 in Global Net Lease on September 12, 2024 and sell it today you would lose (13.00) from holding Global Net Lease or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mayfair Gold Corp vs. Global Net Lease
Performance |
| Timeline |
| Mayfair Gold Corp |
| Global Net Lease |
Mayfair Gold and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and Global Net
The main advantage of trading using opposite Mayfair Gold and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
| Global Net vs. Triton International Limited | Global Net vs. BBB Foods | Global Net vs. Avis Budget Group | Global Net vs. Bridgford Foods |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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