Correlation Between Peloton Minerals and Altamira Gold
Can any of the company-specific risk be diversified away by investing in both Peloton Minerals and Altamira 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 Peloton Minerals and Altamira Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peloton Minerals and Altamira Gold Corp, you can compare the effects of market volatilities on Peloton Minerals and Altamira 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 Peloton Minerals with a short position of Altamira Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peloton Minerals and Altamira Gold.
Diversification Opportunities for Peloton Minerals and Altamira Gold
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Peloton and Altamira is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Peloton Minerals and Altamira Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamira Gold Corp and Peloton Minerals 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 Peloton Minerals are associated (or correlated) with Altamira Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamira Gold Corp has no effect on the direction of Peloton Minerals i.e., Peloton Minerals and Altamira Gold go up and down completely randomly.
Pair Corralation between Peloton Minerals and Altamira Gold
Assuming the 90 days horizon Peloton Minerals is expected to generate 1.46 times more return on investment than Altamira Gold. However, Peloton Minerals is 1.46 times more volatile than Altamira Gold Corp. It trades about 0.04 of its potential returns per unit of risk. Altamira Gold Corp is currently generating about 0.01 per unit of risk. If you would invest 7.79 in Peloton Minerals on August 29, 2024 and sell it today you would lose (1.59) from holding Peloton Minerals or give up 20.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peloton Minerals vs. Altamira Gold Corp
Performance |
| Timeline |
| Peloton Minerals |
| Altamira Gold Corp |
Peloton Minerals and Altamira Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peloton Minerals and Altamira Gold
The main advantage of trading using opposite Peloton Minerals and Altamira Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peloton Minerals position performs unexpectedly, Altamira 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 Altamira Gold will offset losses from the drop in Altamira Gold's long position.| Peloton Minerals vs. BTU Metals Corp | Peloton Minerals vs. Gold Springs Resource | Peloton Minerals vs. Norsemont Mining | Peloton Minerals vs. FireFox Gold Corp |
| Altamira Gold vs. Endurance Gold | Altamira Gold vs. Red Pine Exploration | Altamira Gold vs. Grande Portage Resources | Altamira Gold vs. Tectonic Metals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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