Correlation Between Grid Metals and Golden Goliath
Can any of the company-specific risk be diversified away by investing in both Grid Metals and Golden Goliath 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 Grid Metals and Golden Goliath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grid Metals Corp and Golden Goliath Resources, you can compare the effects of market volatilities on Grid Metals and Golden Goliath 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 Grid Metals with a short position of Golden Goliath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grid Metals and Golden Goliath.
Diversification Opportunities for Grid Metals and Golden Goliath
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grid and Golden is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Grid Metals Corp and Golden Goliath Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Goliath Resources and Grid Metals 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 Grid Metals Corp are associated (or correlated) with Golden Goliath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Goliath Resources has no effect on the direction of Grid Metals i.e., Grid Metals and Golden Goliath go up and down completely randomly.
Pair Corralation between Grid Metals and Golden Goliath
Assuming the 90 days horizon Grid Metals is expected to generate 31.7 times less return on investment than Golden Goliath. But when comparing it to its historical volatility, Grid Metals Corp is 10.62 times less risky than Golden Goliath. It trades about 0.07 of its potential returns per unit of risk. Golden Goliath Resources is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Golden Goliath Resources on August 25, 2024 and sell it today you would lose (3.00) from holding Golden Goliath Resources or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.33% |
| Values | Daily Returns |
Grid Metals Corp vs. Golden Goliath Resources
Performance |
| Timeline |
| Grid Metals Corp |
| Golden Goliath Resources |
Grid Metals and Golden Goliath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grid Metals and Golden Goliath
The main advantage of trading using opposite Grid Metals and Golden Goliath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grid Metals position performs unexpectedly, Golden Goliath 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 Golden Goliath will offset losses from the drop in Golden Goliath's long position.| Grid Metals vs. Ascendant Resources | Grid Metals vs. Cantex Mine Development | Grid Metals vs. Amarc Resources | Grid Metals vs. Sterling Metals Corp |
| Golden Goliath vs. Silver Spruce Resources | Golden Goliath vs. Portofino Resources | Golden Goliath vs. Freegold Ventures Limited | Golden Goliath vs. Bravada Gold |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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