Correlation Between Panther Metals and Golden Metal
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Golden Metal 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 Panther Metals and Golden Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Golden Metal Resources, you can compare the effects of market volatilities on Panther Metals and Golden Metal 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 Panther Metals with a short position of Golden Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Golden Metal.
Diversification Opportunities for Panther Metals and Golden Metal
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panther and Golden is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Golden Metal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Metal Resources and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Golden Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Metal Resources has no effect on the direction of Panther Metals i.e., Panther Metals and Golden Metal go up and down completely randomly.
Pair Corralation between Panther Metals and Golden Metal
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 1.02 times more return on investment than Golden Metal. However, Panther Metals is 1.02 times more volatile than Golden Metal Resources. It trades about 0.04 of its potential returns per unit of risk. Golden Metal Resources is currently generating about -0.01 per unit of risk. If you would invest 10,750 in Panther Metals PLC on August 31, 2024 and sell it today you would earn a total of 750.00 from holding Panther Metals PLC or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panther Metals PLC vs. Golden Metal Resources
Performance |
| Timeline |
| Panther Metals PLC |
| Golden Metal Resources |
Panther Metals and Golden Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Golden Metal
The main advantage of trading using opposite Panther Metals and Golden Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Golden Metal 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 Metal will offset losses from the drop in Golden Metal's long position.| Panther Metals vs. Live Nation Entertainment | Panther Metals vs. G5 Entertainment AB | Panther Metals vs. Cornish Metals | Panther Metals vs. JD Sports Fashion |
| Golden Metal vs. Bankers Investment Trust | Golden Metal vs. Oakley Capital Investments | Golden Metal vs. Federal Realty Investment | Golden Metal vs. New Residential Investment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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