Correlation Between Mullen Automotive and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive 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 Mullen Automotive and GoGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and GoGold Resources, you can compare the effects of market volatilities on Mullen Automotive 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 Mullen Automotive with a short position of GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and GoGold Resources.
Diversification Opportunities for Mullen Automotive and GoGold Resources
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mullen and GoGold is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Mullen Automotive 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 Mullen Automotive 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 Mullen Automotive i.e., Mullen Automotive and GoGold Resources go up and down completely randomly.
Pair Corralation between Mullen Automotive and GoGold Resources
Given the investment horizon of 90 days Mullen Automotive is expected to under-perform the GoGold Resources. In addition to that, Mullen Automotive is 3.25 times more volatile than GoGold Resources. It trades about -0.27 of its total potential returns per unit of risk. GoGold Resources is currently generating about -0.02 per unit of volatility. If you would invest 110.00 in GoGold Resources on September 1, 2024 and sell it today you would lose (18.00) from holding GoGold Resources or give up 16.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mullen Automotive vs. GoGold Resources
Performance |
| Timeline |
| Mullen Automotive |
| GoGold Resources |
Mullen Automotive and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and GoGold Resources
The main advantage of trading using opposite Mullen Automotive and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive 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.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
| GoGold Resources vs. South32 Limited | GoGold Resources vs. NioCorp Developments Ltd | GoGold Resources vs. HUMANA INC | GoGold Resources vs. SCOR PK |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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