Correlation Between Mayfair Gold and Mader Group
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold and Mader Group 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 Mader Group 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 Mader Group Limited, you can compare the effects of market volatilities on Mayfair Gold and Mader Group 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 Mader Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and Mader Group.
Diversification Opportunities for Mayfair Gold and Mader Group
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mayfair and Mader is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and Mader Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mader Group Limited 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 Mader Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mader Group Limited has no effect on the direction of Mayfair Gold i.e., Mayfair Gold and Mader Group go up and down completely randomly.
Pair Corralation between Mayfair Gold and Mader Group
Assuming the 90 days horizon Mayfair Gold Corp is expected to under-perform the Mader Group. In addition to that, Mayfair Gold is 1.67 times more volatile than Mader Group Limited. It trades about -0.04 of its total potential returns per unit of risk. Mader Group Limited is currently generating about 0.01 per unit of volatility. If you would invest 400.00 in Mader Group Limited on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Mader Group Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Mayfair Gold Corp vs. Mader Group Limited
Performance |
| Timeline |
| Mayfair Gold Corp |
| Mader Group Limited |
Mayfair Gold and Mader Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and Mader Group
The main advantage of trading using opposite Mayfair Gold and Mader Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold position performs unexpectedly, Mader Group 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 Mader Group will offset losses from the drop in Mader Group'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 |
| Mader Group vs. Skillful Craftsman Education | Mader Group vs. Catalyst Metals Limited | Mader Group vs. Yuexiu Transport Infrastructure | Mader Group vs. Electrovaya Common Shares |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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