Correlation Between Q2 Metals and Independence Gold
Can any of the company-specific risk be diversified away by investing in both Q2 Metals and Independence 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 Q2 Metals and Independence Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q2 Metals Corp and Independence Gold Corp, you can compare the effects of market volatilities on Q2 Metals and Independence 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 Q2 Metals with a short position of Independence Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q2 Metals and Independence Gold.
Diversification Opportunities for Q2 Metals and Independence Gold
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between QUEXF and Independence is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Q2 Metals Corp and Independence Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Gold Corp and Q2 Metals 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 Q2 Metals Corp are associated (or correlated) with Independence Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Gold Corp has no effect on the direction of Q2 Metals i.e., Q2 Metals and Independence Gold go up and down completely randomly.
Pair Corralation between Q2 Metals and Independence Gold
Assuming the 90 days horizon Q2 Metals is expected to generate 5.63 times less return on investment than Independence Gold. But when comparing it to its historical volatility, Q2 Metals Corp is 5.76 times less risky than Independence Gold. It trades about 0.05 of its potential returns per unit of risk. Independence Gold Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Independence Gold Corp on November 28, 2024 and sell it today you would lose (3.00) from holding Independence Gold Corp or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Q2 Metals Corp vs. Independence Gold Corp
Performance |
| Timeline |
| Q2 Metals Corp |
| Independence Gold Corp |
Q2 Metals and Independence Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Q2 Metals and Independence Gold
The main advantage of trading using opposite Q2 Metals and Independence Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q2 Metals position performs unexpectedly, Independence 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 Independence Gold will offset losses from the drop in Independence Gold's long position.| Q2 Metals vs. Agnico Eagle Mines | Q2 Metals vs. B2Gold Corp | Q2 Metals vs. Pan American Silver | Q2 Metals vs. Gold Fields Ltd |
| Independence Gold vs. Heliostar Metals | Independence Gold vs. Revival Gold | Independence Gold vs. Cabral Gold | Independence 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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