Correlation Between Red Pine and Patagonia Gold
Can any of the company-specific risk be diversified away by investing in both Red Pine and Patagonia 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 Red Pine and Patagonia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Pine Exploration and Patagonia Gold Corp, you can compare the effects of market volatilities on Red Pine and Patagonia 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 Red Pine with a short position of Patagonia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Pine and Patagonia Gold.
Diversification Opportunities for Red Pine and Patagonia Gold
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Red and Patagonia is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Red Pine Exploration and Patagonia Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patagonia Gold Corp and Red Pine 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 Red Pine Exploration are associated (or correlated) with Patagonia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patagonia Gold Corp has no effect on the direction of Red Pine i.e., Red Pine and Patagonia Gold go up and down completely randomly.
Pair Corralation between Red Pine and Patagonia Gold
Assuming the 90 days horizon Red Pine Exploration is expected to under-perform the Patagonia Gold. But the stock apears to be less risky and, when comparing its historical volatility, Red Pine Exploration is 3.19 times less risky than Patagonia Gold. The stock trades about -0.11 of its potential returns per unit of risk. The Patagonia Gold Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Patagonia Gold Corp on September 13, 2024 and sell it today you would lose (0.50) from holding Patagonia Gold Corp or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Pine Exploration vs. Patagonia Gold Corp
Performance |
| Timeline |
| Red Pine Exploration |
| Patagonia Gold Corp |
Red Pine and Patagonia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Pine and Patagonia Gold
The main advantage of trading using opposite Red Pine and Patagonia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Pine position performs unexpectedly, Patagonia 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 Patagonia Gold will offset losses from the drop in Patagonia Gold's long position.| Red Pine vs. Honey Badger Silver | Red Pine vs. Inventus Mining Corp | Red Pine vs. CANEX Metals | Red Pine vs. Ressources Minieres Radisson |
| Patagonia Gold vs. Rover Metals Corp | Patagonia Gold vs. Southern Empire Resources | Patagonia Gold vs. Sarama Resource | Patagonia Gold vs. Awale Resources |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |