Correlation Between Metalla Royalty and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Metalla Royalty and GoGold Resources 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 Metalla Royalty and GoGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metalla Royalty Streaming and GoGold Resources, you can compare the effects of market volatilities on Metalla Royalty and GoGold Resources 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 Metalla Royalty with a short position of GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalla Royalty and GoGold Resources.
Diversification Opportunities for Metalla Royalty and GoGold Resources
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Metalla and GoGold is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Metalla Royalty Streaming and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Metalla Royalty 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 Metalla Royalty Streaming are associated (or correlated) with GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Metalla Royalty i.e., Metalla Royalty and GoGold Resources go up and down completely randomly.
Pair Corralation between Metalla Royalty and GoGold Resources
Considering the 90-day investment horizon Metalla Royalty Streaming is expected to under-perform the GoGold Resources. But the stock apears to be less risky and, when comparing its historical volatility, Metalla Royalty Streaming is 1.21 times less risky than GoGold Resources. The stock trades about -0.02 of its potential returns per unit of risk. The GoGold Resources is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 139.00 in GoGold Resources on August 26, 2024 and sell it today you would lose (46.00) from holding GoGold Resources or give up 33.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metalla Royalty Streaming vs. GoGold Resources
Performance |
| Timeline |
| Metalla Royalty Streaming |
| GoGold Resources |
Metalla Royalty and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metalla Royalty and GoGold Resources
The main advantage of trading using opposite Metalla Royalty and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metalla Royalty position performs unexpectedly, GoGold Resources 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 GoGold Resources will offset losses from the drop in GoGold Resources' long position.| Metalla Royalty vs. Triple Flag Precious | Metalla Royalty vs. Endeavour Silver Corp | Metalla Royalty vs. SilverCrest Metals | Metalla Royalty vs. Gatos Silver |
| GoGold Resources vs. Ascendant Resources | GoGold Resources vs. Cantex Mine Development | GoGold Resources vs. Amarc Resources | GoGold Resources vs. Sterling 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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