Correlation Between Niagara Mohawk and Golden Star
Can any of the company-specific risk be diversified away by investing in both Niagara Mohawk and Golden Star 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 Niagara Mohawk and Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niagara Mohawk Power and Golden Star Resource, you can compare the effects of market volatilities on Niagara Mohawk and Golden Star 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 Niagara Mohawk with a short position of Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niagara Mohawk and Golden Star.
Diversification Opportunities for Niagara Mohawk and Golden Star
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Niagara and Golden is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Niagara Mohawk Power and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource and Niagara Mohawk 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 Niagara Mohawk Power are associated (or correlated) with Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Resource has no effect on the direction of Niagara Mohawk i.e., Niagara Mohawk and Golden Star go up and down completely randomly.
Pair Corralation between Niagara Mohawk and Golden Star
If you would invest 115.00 in Golden Star Resource on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Golden Star Resource or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niagara Mohawk Power vs. Golden Star Resource
Performance |
| Timeline |
| Niagara Mohawk Power |
| Golden Star Resource |
Niagara Mohawk and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niagara Mohawk and Golden Star
The main advantage of trading using opposite Niagara Mohawk and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niagara Mohawk position performs unexpectedly, Golden Star 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 Star will offset losses from the drop in Golden Star's long position.| Niagara Mohawk vs. Copa Holdings SA | Niagara Mohawk vs. United Airlines Holdings | Niagara Mohawk vs. Delta Air Lines | Niagara Mohawk vs. SkyWest |
| Golden Star vs. Itron Inc | Golden Star vs. Omega Healthcare Investors | Golden Star vs. Blacksky Technology | Golden Star vs. Red Cat Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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