Correlation Between NYSE Composite and Athena Gold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Athena 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 NYSE Composite and Athena Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Athena Gold Corp, you can compare the effects of market volatilities on NYSE Composite and Athena 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 NYSE Composite with a short position of Athena Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Athena Gold.
Diversification Opportunities for NYSE Composite and Athena Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Athena is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Athena Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athena Gold Corp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Athena Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athena Gold Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Athena Gold go up and down completely randomly.
Pair Corralation between NYSE Composite and Athena Gold
Assuming the 90 days trading horizon NYSE Composite is expected to generate 13.57 times less return on investment than Athena Gold. But when comparing it to its historical volatility, NYSE Composite is 22.54 times less risky than Athena Gold. It trades about 0.11 of its potential returns per unit of risk. Athena Gold Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Athena Gold Corp on September 2, 2024 and sell it today you would lose (2.00) from holding Athena Gold Corp or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Athena Gold Corp
Performance |
| Timeline |
NYSE Composite and Athena Gold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Athena Gold Corp
Pair trading matchups for Athena Gold
Pair Trading with NYSE Composite and Athena Gold
The main advantage of trading using opposite NYSE Composite and Athena Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Athena 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 Athena Gold will offset losses from the drop in Athena Gold's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Athena Gold vs. Defiance Silver Corp | Athena Gold vs. HUMANA INC | Athena Gold vs. SCOR PK | Athena Gold vs. Aquagold International |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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