Correlation Between Plato Gold and Global Atomic
Can any of the company-specific risk be diversified away by investing in both Plato Gold and Global Atomic 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 Global Atomic 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 Global Atomic Corp, you can compare the effects of market volatilities on Plato Gold and Global Atomic 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 Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plato Gold and Global Atomic.
Diversification Opportunities for Plato Gold and Global Atomic
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Plato and Global is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Plato Gold Corp and Global Atomic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Atomic Corp 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 Global Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Atomic Corp has no effect on the direction of Plato Gold i.e., Plato Gold and Global Atomic go up and down completely randomly.
Pair Corralation between Plato Gold and Global Atomic
Assuming the 90 days horizon Plato Gold Corp is expected to generate 3.67 times more return on investment than Global Atomic. However, Plato Gold is 3.67 times more volatile than Global Atomic Corp. It trades about 0.08 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.02 per unit of risk. If you would invest 2.00 in Plato Gold Corp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Plato Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plato Gold Corp vs. Global Atomic Corp
Performance |
| Timeline |
| Plato Gold Corp |
| Global Atomic Corp |
Plato Gold and Global Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plato Gold and Global Atomic
The main advantage of trading using opposite Plato Gold and Global Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plato Gold position performs unexpectedly, Global Atomic 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 Global Atomic will offset losses from the drop in Global Atomic's long position.| Plato Gold vs. Q Gold Resources | Plato Gold vs. MAS Gold Corp | Plato Gold vs. ExGen Resources | Plato Gold vs. Carlin Gold |
| Global Atomic vs. enCore Energy Corp | Global Atomic vs. GoviEx Uranium | Global Atomic vs. Baselode Energy Corp | Global Atomic vs. Sprott Physical Uranium |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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