Correlation Between Revival Gold and Maple Gold
Can any of the company-specific risk be diversified away by investing in both Revival Gold and Maple 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 Revival Gold and Maple Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revival Gold and Maple Gold Mines, you can compare the effects of market volatilities on Revival Gold and Maple 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 Revival Gold with a short position of Maple Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revival Gold and Maple Gold.
Diversification Opportunities for Revival Gold and Maple Gold
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Revival and Maple is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Revival Gold and Maple Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Gold Mines and Revival Gold 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 Revival Gold are associated (or correlated) with Maple Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Gold Mines has no effect on the direction of Revival Gold i.e., Revival Gold and Maple Gold go up and down completely randomly.
Pair Corralation between Revival Gold and Maple Gold
Assuming the 90 days horizon Revival Gold is expected to under-perform the Maple Gold. But the stock apears to be less risky and, when comparing its historical volatility, Revival Gold is 1.47 times less risky than Maple Gold. The stock trades about -0.02 of its potential returns per unit of risk. The Maple Gold Mines is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Maple Gold Mines on August 26, 2024 and sell it today you would lose (10.00) from holding Maple Gold Mines or give up 62.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Revival Gold vs. Maple Gold Mines
Performance |
Timeline |
Revival Gold |
Maple Gold Mines |
Revival Gold and Maple Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Revival Gold and Maple Gold
The main advantage of trading using opposite Revival Gold and Maple Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revival Gold position performs unexpectedly, Maple 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 Maple Gold will offset losses from the drop in Maple Gold's long position.Revival Gold vs. Integra Resources Corp | Revival Gold vs. Bluestone Resources | Revival Gold vs. White Gold Corp | Revival Gold vs. Westhaven Ventures |
Maple Gold vs. First Majestic Silver | Maple Gold vs. Ivanhoe Energy | Maple Gold vs. Orezone Gold Corp | Maple Gold vs. Faraday Copper Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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