Correlation Between Maple Gold and Galane Gold
Can any of the company-specific risk be diversified away by investing in both Maple Gold and Galane 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 Maple Gold and Galane Gold 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 Galane Gold, you can compare the effects of market volatilities on Maple Gold and Galane 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 Maple Gold with a short position of Galane Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Gold and Galane Gold.
Diversification Opportunities for Maple Gold and Galane Gold
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maple and Galane is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Maple Gold Mines and Galane Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galane Gold 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 Galane Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galane Gold has no effect on the direction of Maple Gold i.e., Maple Gold and Galane Gold go up and down completely randomly.
Pair Corralation between Maple Gold and Galane Gold
Assuming the 90 days horizon Maple Gold Mines is expected to under-perform the Galane Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Maple Gold Mines is 1.16 times less risky than Galane Gold. The otc stock trades about -0.01 of its potential returns per unit of risk. The Galane Gold is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Galane Gold on September 1, 2024 and sell it today you would lose (6.00) from holding Galane Gold or give up 20.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Gold Mines vs. Galane Gold
Performance |
| Timeline |
| Maple Gold Mines |
| Galane Gold |
Maple Gold and Galane Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Gold and Galane Gold
The main advantage of trading using opposite Maple Gold and Galane Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Gold position performs unexpectedly, Galane 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 Galane Gold will offset losses from the drop in Galane Gold's long position.| Maple Gold vs. Steppe Gold | Maple Gold vs. Caledonia Mining | Maple Gold vs. Fortuna Silver Mines | Maple Gold vs. Sandstorm Gold Ltd |
| Galane Gold vs. South32 Limited | Galane Gold vs. NioCorp Developments Ltd | Galane Gold vs. HUMANA INC | Galane Gold vs. SCOR PK |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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