Correlation Between Pan American and Marathon Gold
Can any of the company-specific risk be diversified away by investing in both Pan American and Marathon 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 Pan American and Marathon Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan American Silver and Marathon Gold, you can compare the effects of market volatilities on Pan American and Marathon 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 Pan American with a short position of Marathon Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan American and Marathon Gold.
Diversification Opportunities for Pan American and Marathon Gold
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pan and Marathon is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pan American Silver and Marathon Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Gold and Pan American 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 Pan American Silver are associated (or correlated) with Marathon Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Gold has no effect on the direction of Pan American i.e., Pan American and Marathon Gold go up and down completely randomly.
Pair Corralation between Pan American and Marathon Gold
If you would invest 64.00 in Marathon Gold on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Marathon Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Pan American Silver vs. Marathon Gold
Performance |
| Timeline |
| Pan American Silver |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pan American and Marathon Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan American and Marathon Gold
The main advantage of trading using opposite Pan American and Marathon Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan American position performs unexpectedly, Marathon 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 Marathon Gold will offset losses from the drop in Marathon Gold's long position.| Pan American vs. Newmont Goldcorp Corp | Pan American vs. Wheaton Precious Metals | Pan American vs. Franco Nevada | Pan American vs. Kinross Gold |
| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox Gold 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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