Correlation Between Monument Mining and MAS Gold
Can any of the company-specific risk be diversified away by investing in both Monument Mining and MAS 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 Monument Mining and MAS Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monument Mining Limited and MAS Gold Corp, you can compare the effects of market volatilities on Monument Mining and MAS 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 Monument Mining with a short position of MAS Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monument Mining and MAS Gold.
Diversification Opportunities for Monument Mining and MAS Gold
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Monument and MAS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Monument Mining Limited and MAS Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAS Gold Corp and Monument 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 Monument Mining Limited are associated (or correlated) with MAS Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAS Gold Corp has no effect on the direction of Monument Mining i.e., Monument Mining and MAS Gold go up and down completely randomly.
Pair Corralation between Monument Mining and MAS Gold
Assuming the 90 days horizon Monument Mining is expected to generate 4.78 times less return on investment than MAS Gold. But when comparing it to its historical volatility, Monument Mining Limited is 6.55 times less risky than MAS Gold. It trades about 0.21 of its potential returns per unit of risk. MAS Gold Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1.00 in MAS Gold Corp on August 29, 2024 and sell it today you would earn a total of 1.00 from holding MAS Gold Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monument Mining Limited vs. MAS Gold Corp
Performance |
| Timeline |
| Monument Mining |
| MAS Gold Corp |
Monument Mining and MAS Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monument Mining and MAS Gold
The main advantage of trading using opposite Monument Mining and MAS Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monument Mining position performs unexpectedly, MAS 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 MAS Gold will offset losses from the drop in MAS Gold's long position.| Monument Mining vs. Majestic Gold Corp | Monument Mining vs. Gunpoint Exploration | Monument Mining vs. Q Gold Resources | Monument Mining vs. MAS Gold Corp |
| MAS Gold vs. Desert Gold Ventures | MAS Gold vs. Goldbank Mining Corp | MAS Gold vs. Themac Resources Group | MAS Gold vs. Plato 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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