Correlation Between Galleon Gold and Altamira Gold
Can any of the company-specific risk be diversified away by investing in both Galleon Gold 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 Galleon Gold and Altamira Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galleon Gold Corp and Altamira Gold Corp, you can compare the effects of market volatilities on Galleon Gold 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 Galleon Gold with a short position of Altamira Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galleon Gold and Altamira Gold.
Diversification Opportunities for Galleon Gold and Altamira Gold
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Galleon and Altamira is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Galleon Gold Corp 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 Galleon 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 Galleon Gold Corp 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 Galleon Gold i.e., Galleon Gold and Altamira Gold go up and down completely randomly.
Pair Corralation between Galleon Gold and Altamira Gold
Assuming the 90 days horizon Galleon Gold Corp is expected to generate 0.97 times more return on investment than Altamira Gold. However, Galleon Gold Corp is 1.03 times less risky than Altamira Gold. It trades about 0.12 of its potential returns per unit of risk. Altamira Gold Corp is currently generating about -0.03 per unit of risk. If you would invest 17.00 in Galleon Gold Corp on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Galleon Gold Corp or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Galleon Gold Corp vs. Altamira Gold Corp
Performance |
| Timeline |
| Galleon Gold Corp |
| Altamira Gold Corp |
Galleon Gold and Altamira Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galleon Gold and Altamira Gold
The main advantage of trading using opposite Galleon Gold and Altamira Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galleon Gold 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.| Galleon Gold vs. Edison Cobalt Corp | Galleon Gold vs. Champion Bear Resources | Galleon Gold vs. Avarone Metals | Galleon Gold vs. Adriatic Metals PLC |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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