Correlation Between Maritime Resources and G2 Goldfields
Can any of the company-specific risk be diversified away by investing in both Maritime Resources and G2 Goldfields 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 Maritime Resources and G2 Goldfields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maritime Resources Corp and G2 Goldfields, you can compare the effects of market volatilities on Maritime Resources and G2 Goldfields 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 Maritime Resources with a short position of G2 Goldfields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maritime Resources and G2 Goldfields.
Diversification Opportunities for Maritime Resources and G2 Goldfields
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maritime and GUYGF is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Maritime Resources Corp and G2 Goldfields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G2 Goldfields and Maritime Resources 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 Maritime Resources Corp are associated (or correlated) with G2 Goldfields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G2 Goldfields has no effect on the direction of Maritime Resources i.e., Maritime Resources and G2 Goldfields go up and down completely randomly.
Pair Corralation between Maritime Resources and G2 Goldfields
Assuming the 90 days horizon Maritime Resources Corp is expected to under-perform the G2 Goldfields. In addition to that, Maritime Resources is 2.65 times more volatile than G2 Goldfields. It trades about -0.02 of its total potential returns per unit of risk. G2 Goldfields is currently generating about 0.03 per unit of volatility. If you would invest 152.00 in G2 Goldfields on August 30, 2024 and sell it today you would earn a total of 1.00 from holding G2 Goldfields or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maritime Resources Corp vs. G2 Goldfields
Performance |
| Timeline |
| Maritime Resources Corp |
| G2 Goldfields |
Maritime Resources and G2 Goldfields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maritime Resources and G2 Goldfields
The main advantage of trading using opposite Maritime Resources and G2 Goldfields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maritime Resources position performs unexpectedly, G2 Goldfields 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 G2 Goldfields will offset losses from the drop in G2 Goldfields' long position.| Maritime Resources vs. Vertiv Holdings Co | Maritime Resources vs. Nasdaq Inc | Maritime Resources vs. McDonalds | Maritime Resources vs. Walmart |
| G2 Goldfields vs. Vertiv Holdings Co | G2 Goldfields vs. Nasdaq Inc | G2 Goldfields vs. McDonalds | G2 Goldfields vs. Walmart |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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