Correlation Between Gold Bullion and Acrex
Can any of the company-specific risk be diversified away by investing in both Gold Bullion and Acrex 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 Gold Bullion and Acrex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gold Bullion and Acrex, you can compare the effects of market volatilities on Gold Bullion and Acrex 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 Gold Bullion with a short position of Acrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bullion and Acrex.
Diversification Opportunities for Gold Bullion and Acrex
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gold and Acrex is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Gold Bullion and Acrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrex and Gold Bullion 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 The Gold Bullion are associated (or correlated) with Acrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrex has no effect on the direction of Gold Bullion i.e., Gold Bullion and Acrex go up and down completely randomly.
Pair Corralation between Gold Bullion and Acrex
Assuming the 90 days horizon The Gold Bullion is expected to generate 0.81 times more return on investment than Acrex. However, The Gold Bullion is 1.24 times less risky than Acrex. It trades about 0.37 of its potential returns per unit of risk. Acrex is currently generating about 0.04 per unit of risk. If you would invest 2,053 in The Gold Bullion on November 7, 2024 and sell it today you would earn a total of 125.00 from holding The Gold Bullion or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
The Gold Bullion vs. Acrex
Performance |
| Timeline |
| Gold Bullion |
| Acrex |
Gold Bullion and Acrex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bullion and Acrex
The main advantage of trading using opposite Gold Bullion and Acrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bullion position performs unexpectedly, Acrex 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 Acrex will offset losses from the drop in Acrex's long position.| Gold Bullion vs. Quantified Market Leaders | Gold Bullion vs. Quantified Managed Income | Gold Bullion vs. Quantified Alternative Investment | Gold Bullion vs. Quantified Stf Fund |
| Acrex vs. Growth Allocation Fund | Acrex vs. Vanguard Growth And | Acrex vs. Rational Defensive Growth | Acrex vs. Pnc International Growth |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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