Correlation Between Ridgeline Minerals and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Ridgeline Minerals and Cassiar 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 Ridgeline Minerals and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ridgeline Minerals Corp and Cassiar Gold Corp, you can compare the effects of market volatilities on Ridgeline Minerals and Cassiar 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 Ridgeline Minerals with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ridgeline Minerals and Cassiar Gold.
Diversification Opportunities for Ridgeline Minerals and Cassiar Gold
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ridgeline and Cassiar is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ridgeline Minerals Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Ridgeline Minerals 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 Ridgeline Minerals Corp are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Ridgeline Minerals i.e., Ridgeline Minerals and Cassiar Gold go up and down completely randomly.
Pair Corralation between Ridgeline Minerals and Cassiar Gold
Assuming the 90 days horizon Ridgeline Minerals Corp is expected to generate 1.07 times more return on investment than Cassiar Gold. However, Ridgeline Minerals is 1.07 times more volatile than Cassiar Gold Corp. It trades about 0.12 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about 0.02 per unit of risk. If you would invest 10.00 in Ridgeline Minerals Corp on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Ridgeline Minerals Corp or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Ridgeline Minerals Corp vs. Cassiar Gold Corp
Performance |
| Timeline |
| Ridgeline Minerals Corp |
| Cassiar Gold Corp |
Ridgeline Minerals and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ridgeline Minerals and Cassiar Gold
The main advantage of trading using opposite Ridgeline Minerals and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ridgeline Minerals position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Ridgeline Minerals vs. Puma Exploration | Ridgeline Minerals vs. Endurance Gold | Ridgeline Minerals vs. Grande Portage Resources | Ridgeline Minerals vs. White Gold Corp |
| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival Gold |
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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