Correlation Between Roscan Gold and Contact Gold
Can any of the company-specific risk be diversified away by investing in both Roscan Gold and Contact 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 Roscan Gold and Contact Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roscan Gold Corp and Contact Gold Corp, you can compare the effects of market volatilities on Roscan Gold and Contact 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 Roscan Gold with a short position of Contact Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roscan Gold and Contact Gold.
Diversification Opportunities for Roscan Gold and Contact Gold
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Roscan and Contact is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Roscan Gold Corp and Contact Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contact Gold Corp and Roscan 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 Roscan Gold Corp are associated (or correlated) with Contact Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contact Gold Corp has no effect on the direction of Roscan Gold i.e., Roscan Gold and Contact Gold go up and down completely randomly.
Pair Corralation between Roscan Gold and Contact Gold
If you would invest 1.38 in Contact Gold Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Contact Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Roscan Gold Corp vs. Contact Gold Corp
Performance |
| Timeline |
| Roscan Gold Corp |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Roscan Gold and Contact Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roscan Gold and Contact Gold
The main advantage of trading using opposite Roscan Gold and Contact Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roscan Gold position performs unexpectedly, Contact 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 Contact Gold will offset losses from the drop in Contact Gold's long position.| Roscan Gold vs. Aurion Resources | Roscan Gold vs. Minera Alamos | Roscan Gold vs. Rio2 Limited | Roscan Gold vs. Kalo Gold Holdings |
| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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