Correlation Between Maple Gold and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Maple Gold and Advantage Solutions 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 Advantage Solutions 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 Advantage Solutions, you can compare the effects of market volatilities on Maple Gold and Advantage Solutions 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 Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Gold and Advantage Solutions.
Diversification Opportunities for Maple Gold and Advantage Solutions
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maple and Advantage is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Maple Gold Mines and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions 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 Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Maple Gold i.e., Maple Gold and Advantage Solutions go up and down completely randomly.
Pair Corralation between Maple Gold and Advantage Solutions
Assuming the 90 days horizon Maple Gold Mines is expected to generate 0.74 times more return on investment than Advantage Solutions. However, Maple Gold Mines is 1.36 times less risky than Advantage Solutions. It trades about -0.07 of its potential returns per unit of risk. Advantage Solutions is currently generating about -0.12 per unit of risk. If you would invest 4.80 in Maple Gold Mines on September 13, 2024 and sell it today you would lose (0.80) from holding Maple Gold Mines or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Maple Gold Mines vs. Advantage Solutions
Performance |
| Timeline |
| Maple Gold Mines |
| Advantage Solutions |
Maple Gold and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Gold and Advantage Solutions
The main advantage of trading using opposite Maple Gold and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Gold position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Maple Gold vs. Advantage Solutions | Maple Gold vs. Atlas Corp | Maple Gold vs. PureCycle Technologies | Maple Gold vs. WM Technology |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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