Correlation Between Q Gold and Monument Mining
Can any of the company-specific risk be diversified away by investing in both Q Gold and Monument Mining 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 Q Gold and Monument Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q Gold Resources and Monument Mining Limited, you can compare the effects of market volatilities on Q Gold and Monument Mining 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 Q Gold with a short position of Monument Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q Gold and Monument Mining.
Diversification Opportunities for Q Gold and Monument Mining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QGR and Monument is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Q Gold Resources and Monument Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Mining and Q 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 Q Gold Resources are associated (or correlated) with Monument Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Mining has no effect on the direction of Q Gold i.e., Q Gold and Monument Mining go up and down completely randomly.
Pair Corralation between Q Gold and Monument Mining
Assuming the 90 days horizon Q Gold Resources is expected to under-perform the Monument Mining. In addition to that, Q Gold is 1.43 times more volatile than Monument Mining Limited. It trades about -0.05 of its total potential returns per unit of risk. Monument Mining Limited is currently generating about -0.01 per unit of volatility. If you would invest 30.00 in Monument Mining Limited on August 26, 2024 and sell it today you would lose (1.00) from holding Monument Mining Limited or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Q Gold Resources vs. Monument Mining Limited
Performance |
| Timeline |
| Q Gold Resources |
| Monument Mining |
Q Gold and Monument Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Q Gold and Monument Mining
The main advantage of trading using opposite Q Gold and Monument Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q Gold position performs unexpectedly, Monument Mining 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 Monument Mining will offset losses from the drop in Monument Mining's long position.| Q Gold vs. First Majestic Silver | Q Gold vs. Ivanhoe Energy | Q Gold vs. Orezone Gold Corp | Q Gold vs. Faraday Copper Corp |
| Monument Mining vs. Majestic Gold Corp | Monument Mining vs. Gunpoint Exploration | Monument Mining vs. Q Gold Resources | Monument Mining vs. MAS 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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