Correlation Between Plato Gold and MAS Gold
Can any of the company-specific risk be diversified away by investing in both Plato Gold and MAS 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 Plato Gold and MAS Gold 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 MAS Gold Corp, you can compare the effects of market volatilities on Plato Gold and MAS 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 Plato Gold with a short position of MAS Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plato Gold and MAS Gold.
Diversification Opportunities for Plato Gold and MAS Gold
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Plato and MAS is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Plato Gold Corp and MAS Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAS Gold 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 MAS Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAS Gold Corp has no effect on the direction of Plato Gold i.e., Plato Gold and MAS Gold go up and down completely randomly.
Pair Corralation between Plato Gold and MAS Gold
Assuming the 90 days horizon Plato Gold is expected to generate 1.5 times less return on investment than MAS Gold. But when comparing it to its historical volatility, Plato Gold Corp is 1.56 times less risky than MAS Gold. It trades about 0.08 of its potential returns per unit of risk. MAS Gold Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2.00 in MAS Gold Corp on August 27, 2024 and sell it today you would lose (0.50) from holding MAS Gold Corp or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plato Gold Corp vs. MAS Gold Corp
Performance |
| Timeline |
| Plato Gold Corp |
| MAS Gold Corp |
Plato Gold and MAS Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plato Gold and MAS Gold
The main advantage of trading using opposite Plato Gold and MAS Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plato Gold position performs unexpectedly, MAS 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 MAS Gold will offset losses from the drop in MAS Gold'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 |
| MAS Gold vs. Desert Gold Ventures | MAS Gold vs. Goldbank Mining Corp | MAS Gold vs. Themac Resources Group | MAS Gold vs. Plato 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |