Correlation Between Mako Mining and Bald Eagle
Can any of the company-specific risk be diversified away by investing in both Mako Mining and Bald Eagle 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 Bald Eagle 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 Bald Eagle Gold, you can compare the effects of market volatilities on Mako Mining and Bald Eagle 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 Bald Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Bald Eagle.
Diversification Opportunities for Mako Mining and Bald Eagle
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mako and Bald is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Bald Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bald Eagle Gold 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 Bald Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bald Eagle Gold has no effect on the direction of Mako Mining i.e., Mako Mining and Bald Eagle go up and down completely randomly.
Pair Corralation between Mako Mining and Bald Eagle
Assuming the 90 days horizon Mako Mining is expected to generate 2.15 times less return on investment than Bald Eagle. But when comparing it to its historical volatility, Mako Mining Corp is 1.5 times less risky than Bald Eagle. It trades about 0.06 of its potential returns per unit of risk. Bald Eagle Gold is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Bald Eagle Gold on August 25, 2024 and sell it today you would earn a total of 44.00 from holding Bald Eagle Gold or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Bald Eagle Gold
Performance |
| Timeline |
| Mako Mining Corp |
| Bald Eagle Gold |
Mako Mining and Bald Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Bald Eagle
The main advantage of trading using opposite Mako Mining and Bald Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, Bald Eagle 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 Bald Eagle will offset losses from the drop in Bald Eagle's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| Bald Eagle vs. Mako Mining Corp | Bald Eagle vs. Arizona Gold Silver | Bald Eagle vs. Globex Mining Enterprises | Bald Eagle vs. T2 Metals 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 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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