Correlation Between Plato Gold and Almaden Minerals
Can any of the company-specific risk be diversified away by investing in both Plato Gold and Almaden Minerals 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 Plato Gold and Almaden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plato Gold Corp and Almaden Minerals, you can compare the effects of market volatilities on Plato Gold and Almaden Minerals 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 Plato Gold with a short position of Almaden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plato Gold and Almaden Minerals.
Diversification Opportunities for Plato Gold and Almaden Minerals
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plato and Almaden is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Plato Gold Corp and Almaden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almaden Minerals and Plato 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 Plato Gold Corp are associated (or correlated) with Almaden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almaden Minerals has no effect on the direction of Plato Gold i.e., Plato Gold and Almaden Minerals go up and down completely randomly.
Pair Corralation between Plato Gold and Almaden Minerals
Assuming the 90 days horizon Plato Gold Corp is expected to under-perform the Almaden Minerals. In addition to that, Plato Gold is 2.24 times more volatile than Almaden Minerals. It trades about -0.04 of its total potential returns per unit of risk. Almaden Minerals is currently generating about -0.05 per unit of volatility. If you would invest 7.00 in Almaden Minerals on August 28, 2024 and sell it today you would lose (1.50) from holding Almaden Minerals or give up 21.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plato Gold Corp vs. Almaden Minerals
Performance |
| Timeline |
| Plato Gold Corp |
| Almaden Minerals |
Plato Gold and Almaden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plato Gold and Almaden Minerals
The main advantage of trading using opposite Plato Gold and Almaden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plato Gold position performs unexpectedly, Almaden Minerals 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 Almaden Minerals will offset losses from the drop in Almaden Minerals' long position.| Plato Gold vs. Q Gold Resources | Plato Gold vs. MAS Gold Corp | Plato Gold vs. ExGen Resources | Plato Gold vs. Carlin Gold |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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