Correlation Between Outcrop Gold and Strikepoint Gold
Can any of the company-specific risk be diversified away by investing in both Outcrop Gold and Strikepoint 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 Outcrop Gold and Strikepoint Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outcrop Gold Corp and Strikepoint Gold, you can compare the effects of market volatilities on Outcrop Gold and Strikepoint 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 Outcrop Gold with a short position of Strikepoint Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outcrop Gold and Strikepoint Gold.
Diversification Opportunities for Outcrop Gold and Strikepoint Gold
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Outcrop and Strikepoint is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Outcrop Gold Corp and Strikepoint Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strikepoint Gold and Outcrop Gold 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 Outcrop Gold Corp are associated (or correlated) with Strikepoint Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strikepoint Gold has no effect on the direction of Outcrop Gold i.e., Outcrop Gold and Strikepoint Gold go up and down completely randomly.
Pair Corralation between Outcrop Gold and Strikepoint Gold
Assuming the 90 days horizon Outcrop Gold Corp is expected to under-perform the Strikepoint Gold. But the stock apears to be less risky and, when comparing its historical volatility, Outcrop Gold Corp is 1.89 times less risky than Strikepoint Gold. The stock trades about -0.33 of its potential returns per unit of risk. The Strikepoint Gold is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Strikepoint Gold on August 25, 2024 and sell it today you would lose (8.00) from holding Strikepoint Gold or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Outcrop Gold Corp vs. Strikepoint Gold
Performance |
| Timeline |
| Outcrop Gold Corp |
| Strikepoint Gold |
Outcrop Gold and Strikepoint Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outcrop Gold and Strikepoint Gold
The main advantage of trading using opposite Outcrop Gold and Strikepoint Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outcrop Gold position performs unexpectedly, Strikepoint 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 Strikepoint Gold will offset losses from the drop in Strikepoint Gold's long position.| Outcrop Gold vs. Strikepoint Gold | Outcrop Gold vs. Kootenay Silver | Outcrop Gold vs. Kore Mining | Outcrop Gold vs. Blackrock Silver Corp |
| Strikepoint Gold vs. First Majestic Silver | Strikepoint Gold vs. Ivanhoe Energy | Strikepoint Gold vs. Orezone Gold Corp | Strikepoint Gold vs. Faraday Copper Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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