Correlation Between NYSE Composite and Galleon Gold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Galleon 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 Galleon 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 Galleon Gold Corp, you can compare the effects of market volatilities on NYSE Composite and Galleon 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 Galleon Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Galleon Gold.
Diversification Opportunities for NYSE Composite and Galleon Gold
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Galleon is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Galleon Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galleon 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 Galleon Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galleon Gold Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Galleon Gold go up and down completely randomly.
Pair Corralation between NYSE Composite and Galleon Gold
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Galleon Gold. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 9.05 times less risky than Galleon Gold. The index trades about -0.02 of its potential returns per unit of risk. The Galleon Gold Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Galleon Gold Corp on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Galleon Gold Corp or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NYSE Composite vs. Galleon Gold Corp
Performance |
| Timeline |
NYSE Composite and Galleon Gold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Galleon Gold Corp
Pair trading matchups for Galleon Gold
Pair Trading with NYSE Composite and Galleon Gold
The main advantage of trading using opposite NYSE Composite and Galleon Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Galleon 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 Galleon Gold will offset losses from the drop in Galleon Gold's long position.| NYSE Composite vs. Kenon Holdings | NYSE Composite vs. American Electric Power | NYSE Composite vs. Mesa Air Group | NYSE Composite vs. Suburban Propane Partners |
| Galleon Gold vs. Edison Cobalt Corp | Galleon Gold vs. Champion Bear Resources | Galleon Gold vs. Avarone Metals | Galleon Gold vs. Adriatic Metals PLC |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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