Correlation Between Magna Gold and Labrador Gold
Can any of the company-specific risk be diversified away by investing in both Magna Gold and Labrador 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 Magna Gold and Labrador Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna Gold Corp and Labrador Gold Corp, you can compare the effects of market volatilities on Magna Gold and Labrador 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 Magna Gold with a short position of Labrador Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Gold and Labrador Gold.
Diversification Opportunities for Magna Gold and Labrador Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magna and Labrador is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magna Gold Corp and Labrador Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labrador Gold Corp and Magna 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 Magna Gold Corp are associated (or correlated) with Labrador Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labrador Gold Corp has no effect on the direction of Magna Gold i.e., Magna Gold and Labrador Gold go up and down completely randomly.
Pair Corralation between Magna Gold and Labrador Gold
Assuming the 90 days horizon Magna Gold Corp is expected to generate 2.07 times more return on investment than Labrador Gold. However, Magna Gold is 2.07 times more volatile than Labrador Gold Corp. It trades about 0.01 of its potential returns per unit of risk. Labrador Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 3.70 in Magna Gold Corp on August 29, 2024 and sell it today you would lose (2.90) from holding Magna Gold Corp or give up 78.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 31.45% |
| Values | Daily Returns |
Magna Gold Corp vs. Labrador Gold Corp
Performance |
| Timeline |
| Magna Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Labrador Gold Corp |
Magna Gold and Labrador Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna Gold and Labrador Gold
The main advantage of trading using opposite Magna Gold and Labrador Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna Gold position performs unexpectedly, Labrador 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 Labrador Gold will offset losses from the drop in Labrador Gold's long position.| Magna Gold vs. Robex Resources | Magna Gold vs. Rover Metals Corp | Magna Gold vs. Eloro Resources | Magna Gold vs. Orefinders Resources |
| Labrador Gold vs. Exploits Discovery Corp | Labrador Gold vs. Mako Mining Corp | Labrador Gold vs. Puma Exploration | Labrador Gold vs. Aurion Resources |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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