Correlation Between Matador Mining and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Matador Mining and Antilles 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 Matador Mining and Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matador Mining Limited and Antilles Gold Limited, you can compare the effects of market volatilities on Matador Mining and Antilles 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 Matador Mining with a short position of Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Mining and Antilles Gold.
Diversification Opportunities for Matador Mining and Antilles Gold
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Matador and Antilles is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Matador Mining Limited and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited and Matador 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 Matador Mining Limited are associated (or correlated) with Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Matador Mining i.e., Matador Mining and Antilles Gold go up and down completely randomly.
Pair Corralation between Matador Mining and Antilles Gold
If you would invest 0.30 in Antilles Gold Limited on October 21, 2024 and sell it today you would earn a total of 0.02 from holding Antilles Gold Limited or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Matador Mining Limited vs. Antilles Gold Limited
Performance |
| Timeline |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Antilles Gold Limited |
Matador Mining and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matador Mining and Antilles Gold
The main advantage of trading using opposite Matador Mining and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador Mining position performs unexpectedly, Antilles 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum Gold |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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