Correlation Between Galleon Gold and Tristar Gold
Can any of the company-specific risk be diversified away by investing in both Galleon Gold and Tristar 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 Tristar 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 Tristar Gold, you can compare the effects of market volatilities on Galleon Gold and Tristar 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 Tristar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galleon Gold and Tristar Gold.
Diversification Opportunities for Galleon Gold and Tristar Gold
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Galleon and Tristar is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Galleon Gold Corp and Tristar Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tristar Gold 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 Tristar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tristar Gold has no effect on the direction of Galleon Gold i.e., Galleon Gold and Tristar Gold go up and down completely randomly.
Pair Corralation between Galleon Gold and Tristar Gold
Assuming the 90 days horizon Galleon Gold Corp is expected to generate 0.91 times more return on investment than Tristar Gold. However, Galleon Gold Corp is 1.1 times less risky than Tristar Gold. It trades about -0.19 of its potential returns per unit of risk. Tristar Gold is currently generating about -0.17 per unit of risk. If you would invest 18.00 in Galleon Gold Corp on August 30, 2024 and sell it today you would lose (5.00) from holding Galleon Gold Corp or give up 27.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Galleon Gold Corp vs. Tristar Gold
Performance |
| Timeline |
| Galleon Gold Corp |
| Tristar Gold |
Galleon Gold and Tristar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galleon Gold and Tristar Gold
The main advantage of trading using opposite Galleon Gold and Tristar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galleon Gold position performs unexpectedly, Tristar 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 Tristar Gold will offset losses from the drop in Tristar Gold's long position.| Galleon Gold vs. Aurion Resources | Galleon Gold vs. Rio2 Limited | Galleon Gold vs. Minera Alamos | Galleon Gold vs. I 80 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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