Correlation Between Platinum Group and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Platinum Group and GoGold Resources 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 Platinum Group and GoGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Group Metals and GoGold Resources, you can compare the effects of market volatilities on Platinum Group and GoGold Resources 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 Platinum Group with a short position of GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Group and GoGold Resources.
Diversification Opportunities for Platinum Group and GoGold Resources
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Platinum and GoGold is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Group Metals and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Platinum Group 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 Platinum Group Metals are associated (or correlated) with GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Platinum Group i.e., Platinum Group and GoGold Resources go up and down completely randomly.
Pair Corralation between Platinum Group and GoGold Resources
Considering the 90-day investment horizon Platinum Group Metals is not expected to generate positive returns. Moreover, Platinum Group is 1.77 times more volatile than GoGold Resources. It trades away all of its potential returns to assume current level of volatility. GoGold Resources is currently generating about -0.32 per unit of risk. If you would invest 177.00 in Platinum Group Metals on September 2, 2024 and sell it today you would lose (4.00) from holding Platinum Group Metals or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Group Metals vs. GoGold Resources
Performance |
| Timeline |
| Platinum Group Metals |
| GoGold Resources |
Platinum Group and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Group and GoGold Resources
The main advantage of trading using opposite Platinum Group and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Group position performs unexpectedly, GoGold Resources 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 GoGold Resources will offset losses from the drop in GoGold Resources' long position.| Platinum Group vs. Endeavour Silver Corp | Platinum Group vs. Avino Silver Gold | Platinum Group vs. Fortuna Silver Mines | Platinum Group vs. Impala Platinum Holdings |
| GoGold Resources vs. Regenx Tech Corp | GoGold Resources vs. P2 Gold | GoGold Resources vs. Max Resource Corp | GoGold Resources vs. Pacific Ridge Exploration |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |