Correlation Between Rockhaven Resources and Independence Gold
Can any of the company-specific risk be diversified away by investing in both Rockhaven Resources 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 Rockhaven Resources and Independence Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rockhaven Resources and Independence Gold Corp, you can compare the effects of market volatilities on Rockhaven Resources 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 Rockhaven Resources with a short position of Independence Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rockhaven Resources and Independence Gold.
Diversification Opportunities for Rockhaven Resources and Independence Gold
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rockhaven and Independence is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Rockhaven Resources 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 Rockhaven 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 Rockhaven Resources 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 Rockhaven Resources i.e., Rockhaven Resources and Independence Gold go up and down completely randomly.
Pair Corralation between Rockhaven Resources and Independence Gold
Given the investment horizon of 90 days Rockhaven Resources is expected to generate 1.79 times more return on investment than Independence Gold. However, Rockhaven Resources is 1.79 times more volatile than Independence Gold Corp. It trades about 0.18 of its potential returns per unit of risk. Independence Gold Corp is currently generating about -0.39 per unit of risk. If you would invest 7.00 in Rockhaven Resources on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Rockhaven Resources or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rockhaven Resources vs. Independence Gold Corp
Performance |
| Timeline |
| Rockhaven Resources |
| Independence Gold Corp |
Rockhaven Resources and Independence Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rockhaven Resources and Independence Gold
The main advantage of trading using opposite Rockhaven Resources and Independence Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rockhaven Resources 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.| Rockhaven Resources vs. Independence Gold Corp | Rockhaven Resources vs. Avrupa Minerals | Rockhaven Resources vs. Tristar Gold | Rockhaven Resources vs. Thunderstruck Resources |
| Independence Gold vs. Kesselrun Resources | Independence Gold vs. Altiplano Metals | Independence Gold vs. Rockhaven Resources | Independence Gold vs. Magnum Goldcorp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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