Correlation Between Puma Exploration and Revival Gold
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Revival 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 Puma Exploration and Revival Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Revival Gold, you can compare the effects of market volatilities on Puma Exploration and Revival 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 Puma Exploration with a short position of Revival Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Revival Gold.
Diversification Opportunities for Puma Exploration and Revival Gold
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puma and Revival is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Revival Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revival Gold 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 Revival Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revival Gold has no effect on the direction of Puma Exploration i.e., Puma Exploration and Revival Gold go up and down completely randomly.
Pair Corralation between Puma Exploration and Revival Gold
Assuming the 90 days horizon Puma Exploration is expected to generate 3.74 times less return on investment than Revival Gold. In addition to that, Puma Exploration is 1.31 times more volatile than Revival Gold. It trades about 0.05 of its total potential returns per unit of risk. Revival Gold is currently generating about 0.23 per unit of volatility. If you would invest 17.00 in Revival Gold on November 28, 2024 and sell it today you would earn a total of 6.00 from holding Revival Gold or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Exploration vs. Revival Gold
Performance |
| Timeline |
| Puma Exploration |
| Revival Gold |
Puma Exploration and Revival Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Revival Gold
The main advantage of trading using opposite Puma Exploration and Revival Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Revival 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 Revival Gold will offset losses from the drop in Revival Gold'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 |
| Revival Gold vs. Westward Gold | Revival Gold vs. Heliostar Metals | Revival Gold vs. Cabral Gold | Revival Gold vs. Cassiar 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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