Correlation Between New Guinea and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both New Guinea and Endurance 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 New Guinea and Endurance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Guinea Gold and Endurance Gold, you can compare the effects of market volatilities on New Guinea and Endurance 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 New Guinea with a short position of Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Guinea and Endurance Gold.
Diversification Opportunities for New Guinea and Endurance Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Endurance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Guinea Gold and Endurance Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold and New Guinea 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 New Guinea Gold are associated (or correlated) with Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold has no effect on the direction of New Guinea i.e., New Guinea and Endurance Gold go up and down completely randomly.
Pair Corralation between New Guinea and Endurance Gold
Assuming the 90 days horizon New Guinea Gold is expected to under-perform the Endurance Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, New Guinea Gold is 1.12 times less risky than Endurance Gold. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Endurance Gold is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Endurance Gold on September 3, 2024 and sell it today you would lose (16.00) from holding Endurance Gold or give up 61.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
New Guinea Gold vs. Endurance Gold
Performance |
| Timeline |
| New Guinea Gold |
| Endurance Gold |
New Guinea and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Guinea and Endurance Gold
The main advantage of trading using opposite New Guinea and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Guinea position performs unexpectedly, Endurance 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 Endurance Gold will offset losses from the drop in Endurance Gold's long position.| New Guinea vs. Endurance Gold | New Guinea vs. Sixty North Gold | New Guinea vs. St James Gold | New Guinea vs. Makara Mining Corp |
| Endurance Gold vs. Red Pine Exploration | Endurance Gold vs. Altamira Gold Corp | Endurance Gold vs. Grande Portage Resources | Endurance Gold vs. Tectonic Metals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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