Correlation Between Ressources Minieres and IAMGold
Can any of the company-specific risk be diversified away by investing in both Ressources Minieres and IAMGold 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 Ressources Minieres and IAMGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ressources Minieres Radisson and IAMGold, you can compare the effects of market volatilities on Ressources Minieres and IAMGold 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 Ressources Minieres with a short position of IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ressources Minieres and IAMGold.
Diversification Opportunities for Ressources Minieres and IAMGold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ressources and IAMGold is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ressources Minieres Radisson and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold and Ressources Minieres 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 Ressources Minieres Radisson are associated (or correlated) with IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of Ressources Minieres i.e., Ressources Minieres and IAMGold go up and down completely randomly.
Pair Corralation between Ressources Minieres and IAMGold
Assuming the 90 days horizon Ressources Minieres Radisson is expected to generate 1.52 times more return on investment than IAMGold. However, Ressources Minieres is 1.52 times more volatile than IAMGold. It trades about 0.06 of its potential returns per unit of risk. IAMGold is currently generating about 0.09 per unit of risk. If you would invest 18.00 in Ressources Minieres Radisson on December 2, 2024 and sell it today you would earn a total of 12.00 from holding Ressources Minieres Radisson or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ressources Minieres Radisson vs. IAMGold
Performance |
| Timeline |
| Ressources Minieres |
| IAMGold |
Ressources Minieres and IAMGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ressources Minieres and IAMGold
The main advantage of trading using opposite Ressources Minieres and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ressources Minieres position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.| Ressources Minieres vs. Northern Superior Resources | Ressources Minieres vs. Red Pine Exploration | Ressources Minieres vs. Galantas Gold Corp | Ressources Minieres vs. Kore Mining |
| IAMGold vs. Eldorado Gold Corp | IAMGold vs. Kinross Gold Corp | IAMGold vs. Alamos Gold | IAMGold vs. New 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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