Correlation Between Mako Mining and Altamira Gold
Can any of the company-specific risk be diversified away by investing in both Mako Mining and Altamira 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 Mako Mining and Altamira Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Altamira Gold Corp, you can compare the effects of market volatilities on Mako Mining and Altamira 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 Mako Mining with a short position of Altamira Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Altamira Gold.
Diversification Opportunities for Mako Mining and Altamira Gold
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mako and Altamira is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Altamira Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamira Gold Corp and Mako Mining 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 Mako Mining Corp are associated (or correlated) with Altamira Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamira Gold Corp has no effect on the direction of Mako Mining i.e., Mako Mining and Altamira Gold go up and down completely randomly.
Pair Corralation between Mako Mining and Altamira Gold
Assuming the 90 days horizon Mako Mining Corp is expected to generate 0.43 times more return on investment than Altamira Gold. However, Mako Mining Corp is 2.34 times less risky than Altamira Gold. It trades about 0.03 of its potential returns per unit of risk. Altamira Gold Corp is currently generating about -0.25 per unit of risk. If you would invest 312.00 in Mako Mining Corp on August 26, 2024 and sell it today you would earn a total of 3.00 from holding Mako Mining Corp or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Altamira Gold Corp
Performance |
| Timeline |
| Mako Mining Corp |
| Altamira Gold Corp |
Mako Mining and Altamira Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Altamira Gold
The main advantage of trading using opposite Mako Mining and Altamira Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, Altamira 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 Altamira Gold will offset losses from the drop in Altamira Gold's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| Altamira Gold vs. First Majestic Silver | Altamira Gold vs. Ivanhoe Energy | Altamira Gold vs. Orezone Gold 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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