Correlation Between Shanta Gold and Independence Gold
Can any of the company-specific risk be diversified away by investing in both Shanta Gold 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 Shanta Gold and Independence Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shanta Gold Limited and Independence Gold Corp, you can compare the effects of market volatilities on Shanta Gold 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 Shanta Gold with a short position of Independence Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanta Gold and Independence Gold.
Diversification Opportunities for Shanta Gold and Independence Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shanta and Independence is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shanta Gold Limited 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 Shanta 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 Shanta Gold Limited 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 Shanta Gold i.e., Shanta Gold and Independence Gold go up and down completely randomly.
Pair Corralation between Shanta Gold and Independence Gold
If you would invest 11.00 in Independence Gold Corp on December 4, 2024 and sell it today you would earn a total of 1.00 from holding Independence Gold Corp or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Shanta Gold Limited vs. Independence Gold Corp
Performance |
| Timeline |
| Shanta Gold Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Independence Gold Corp |
Shanta Gold and Independence Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanta Gold and Independence Gold
The main advantage of trading using opposite Shanta Gold and Independence Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanta Gold 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.| Shanta Gold vs. Argo Gold | Shanta Gold vs. Minnova Corp | Shanta Gold vs. Blue Star Gold | Shanta Gold vs. Advance Gold Corp |
| Independence Gold vs. Heliostar Metals | Independence Gold vs. Revival Gold | Independence Gold vs. Cabral Gold | Independence Gold vs. Cassiar Gold 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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