Correlation Between Regis Resources and Almaden Minerals
Can any of the company-specific risk be diversified away by investing in both Regis Resources and Almaden Minerals 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 Regis Resources and Almaden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Resources and Almaden Minerals, you can compare the effects of market volatilities on Regis Resources and Almaden Minerals 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 Regis Resources with a short position of Almaden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Resources and Almaden Minerals.
Diversification Opportunities for Regis Resources and Almaden Minerals
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regis and Almaden is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Regis Resources and Almaden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almaden Minerals and Regis Resources 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 Regis Resources are associated (or correlated) with Almaden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almaden Minerals has no effect on the direction of Regis Resources i.e., Regis Resources and Almaden Minerals go up and down completely randomly.
Pair Corralation between Regis Resources and Almaden Minerals
Assuming the 90 days horizon Regis Resources is expected to generate 0.86 times more return on investment than Almaden Minerals. However, Regis Resources is 1.16 times less risky than Almaden Minerals. It trades about 0.03 of its potential returns per unit of risk. Almaden Minerals is currently generating about -0.07 per unit of risk. If you would invest 140.00 in Regis Resources on November 2, 2024 and sell it today you would earn a total of 46.00 from holding Regis Resources or generate 32.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 22.72% |
| Values | Daily Returns |
Regis Resources vs. Almaden Minerals
Performance |
| Timeline |
| Regis Resources |
| Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Regis Resources and Almaden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Resources and Almaden Minerals
The main advantage of trading using opposite Regis Resources and Almaden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Resources position performs unexpectedly, Almaden Minerals 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 Almaden Minerals will offset losses from the drop in Almaden Minerals' long position.| Regis Resources vs. Centerra Gold | Regis Resources vs. Southern Arc Minerals | Regis Resources vs. Coeur Mining | Regis Resources vs. Kinross Gold |
| Almaden Minerals vs. Antioquia Gold | Almaden Minerals vs. Asante Gold | Almaden Minerals vs. Bluestone Resources | Almaden Minerals vs. Big Ridge 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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