Correlation Between Prospector Metals and Antilles Gold
Can any of the company-specific risk be diversified away by investing in both Prospector Metals and Antilles 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 Prospector Metals and Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prospector Metals Corp and Antilles Gold Limited, you can compare the effects of market volatilities on Prospector Metals and Antilles 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 Prospector Metals with a short position of Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prospector Metals and Antilles Gold.
Diversification Opportunities for Prospector Metals and Antilles Gold
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prospector and Antilles is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Prospector Metals Corp and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited and Prospector Metals 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 Prospector Metals Corp are associated (or correlated) with Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Prospector Metals i.e., Prospector Metals and Antilles Gold go up and down completely randomly.
Pair Corralation between Prospector Metals and Antilles Gold
Assuming the 90 days horizon Prospector Metals is expected to generate 6.21 times less return on investment than Antilles Gold. But when comparing it to its historical volatility, Prospector Metals Corp is 2.26 times less risky than Antilles Gold. It trades about 0.03 of its potential returns per unit of risk. Antilles Gold Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.21 in Antilles Gold Limited on September 14, 2024 and sell it today you would lose (0.91) from holding Antilles Gold Limited or give up 75.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Prospector Metals Corp vs. Antilles Gold Limited
Performance |
| Timeline |
| Prospector Metals Corp |
| Antilles Gold Limited |
Prospector Metals and Antilles Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prospector Metals and Antilles Gold
The main advantage of trading using opposite Prospector Metals and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prospector Metals position performs unexpectedly, Antilles 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.| Prospector Metals vs. Origin Materials | Prospector Metals vs. Axalta Coating Systems | Prospector Metals vs. Park Electrochemical | Prospector Metals vs. Sable Offshore Corp |
| Antilles Gold vs. Revival Gold | Antilles Gold vs. Galiano Gold | Antilles Gold vs. US Gold Corp | Antilles Gold vs. HUMANA INC |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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