Correlation Between Maple Gold and Rockhaven Resources
Can any of the company-specific risk be diversified away by investing in both Maple Gold and Rockhaven Resources 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 Maple Gold and Rockhaven Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Gold Mines and Rockhaven Resources, you can compare the effects of market volatilities on Maple Gold and Rockhaven Resources 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 Maple Gold with a short position of Rockhaven Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Gold and Rockhaven Resources.
Diversification Opportunities for Maple Gold and Rockhaven Resources
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Rockhaven is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Maple Gold Mines and Rockhaven Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rockhaven Resources and Maple 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 Maple Gold Mines are associated (or correlated) with Rockhaven Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rockhaven Resources has no effect on the direction of Maple Gold i.e., Maple Gold and Rockhaven Resources go up and down completely randomly.
Pair Corralation between Maple Gold and Rockhaven Resources
Assuming the 90 days horizon Maple Gold Mines is expected to under-perform the Rockhaven Resources. But the stock apears to be less risky and, when comparing its historical volatility, Maple Gold Mines is 1.05 times less risky than Rockhaven Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Rockhaven Resources is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Rockhaven Resources on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Rockhaven Resources or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Gold Mines vs. Rockhaven Resources
Performance |
| Timeline |
| Maple Gold Mines |
| Rockhaven Resources |
Maple Gold and Rockhaven Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Gold and Rockhaven Resources
The main advantage of trading using opposite Maple Gold and Rockhaven Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Gold position performs unexpectedly, Rockhaven Resources 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 Rockhaven Resources will offset losses from the drop in Rockhaven Resources' long position.| Maple Gold vs. Liberty Gold Corp | Maple Gold vs. Cartier Resources | Maple Gold vs. Banyan Gold Corp | Maple Gold vs. Maritime Resources Corp |
| Rockhaven Resources vs. First Majestic Silver | Rockhaven Resources vs. Ivanhoe Energy | Rockhaven Resources vs. Orezone Gold Corp | Rockhaven Resources vs. Faraday Copper Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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