Correlation Between Puma Exploration and Gold Reserve
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Gold Reserve 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 Puma Exploration and Gold Reserve into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Gold Reserve, you can compare the effects of market volatilities on Puma Exploration and Gold Reserve 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 Puma Exploration with a short position of Gold Reserve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Gold Reserve.
Diversification Opportunities for Puma Exploration and Gold Reserve
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puma and Gold is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Gold Reserve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Reserve and Puma Exploration 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 Puma Exploration are associated (or correlated) with Gold Reserve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Reserve has no effect on the direction of Puma Exploration i.e., Puma Exploration and Gold Reserve go up and down completely randomly.
Pair Corralation between Puma Exploration and Gold Reserve
Assuming the 90 days horizon Puma Exploration is expected to generate 59.0 times less return on investment than Gold Reserve. In addition to that, Puma Exploration is 1.41 times more volatile than Gold Reserve. It trades about 0.0 of its total potential returns per unit of risk. Gold Reserve is currently generating about 0.02 per unit of volatility. If you would invest 144.00 in Gold Reserve on September 24, 2024 and sell it today you would earn a total of 1.00 from holding Gold Reserve or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Exploration vs. Gold Reserve
Performance |
| Timeline |
| Puma Exploration |
| Gold Reserve |
Puma Exploration and Gold Reserve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Gold Reserve
The main advantage of trading using opposite Puma Exploration and Gold Reserve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Gold Reserve 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 Gold Reserve will offset losses from the drop in Gold Reserve's long position.| Puma Exploration vs. Sixty North Gold | Puma Exploration vs. Red Pine Exploration | Puma Exploration vs. Grande Portage Resources | Puma Exploration vs. Altamira Gold Corp |
| Gold Reserve vs. Puma Exploration | Gold Reserve vs. Sixty North Gold | Gold Reserve vs. Red Pine Exploration | Gold Reserve vs. Altamira 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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