Correlation Between Marathon Gold and Royal Gold
Can any of the company-specific risk be diversified away by investing in both Marathon Gold and Royal 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 Marathon Gold and Royal Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Gold and Royal Gold, you can compare the effects of market volatilities on Marathon Gold and Royal 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 Marathon Gold with a short position of Royal Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Gold and Royal Gold.
Diversification Opportunities for Marathon Gold and Royal Gold
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marathon and Royal is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Gold and Royal Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Gold and Marathon 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 Marathon Gold are associated (or correlated) with Royal Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Gold has no effect on the direction of Marathon Gold i.e., Marathon Gold and Royal Gold go up and down completely randomly.
Pair Corralation between Marathon Gold and Royal Gold
If you would invest 64.00 in Marathon Gold on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Marathon Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 2.5% |
| Values | Daily Returns |
Marathon Gold vs. Royal Gold
Performance |
| Timeline |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Royal Gold |
Marathon Gold and Royal Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Gold and Royal Gold
The main advantage of trading using opposite Marathon Gold and Royal Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Gold position performs unexpectedly, Royal 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 Royal Gold will offset losses from the drop in Royal Gold's long position.| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox Gold Corp |
| Royal Gold vs. Wheaton Precious Metals | Royal Gold vs. Agnico Eagle Mines | Royal Gold vs. Sandstorm Gold Ltd | Royal Gold vs. Osisko Gold Ro |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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