Correlation Between Sterling Metals and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Sterling Metals and GoGold Resources 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 Sterling Metals and GoGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Metals Corp and GoGold Resources, you can compare the effects of market volatilities on Sterling Metals and GoGold Resources 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 Sterling Metals with a short position of GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Metals and GoGold Resources.
Diversification Opportunities for Sterling Metals and GoGold Resources
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sterling and GoGold is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Metals Corp and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Sterling Metals 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 Sterling Metals Corp are associated (or correlated) with GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Sterling Metals i.e., Sterling Metals and GoGold Resources go up and down completely randomly.
Pair Corralation between Sterling Metals and GoGold Resources
Assuming the 90 days horizon Sterling Metals Corp is expected to under-perform the GoGold Resources. In addition to that, Sterling Metals is 2.14 times more volatile than GoGold Resources. It trades about -0.24 of its total potential returns per unit of risk. GoGold Resources is currently generating about -0.4 per unit of volatility. If you would invest 122.00 in GoGold Resources on August 26, 2024 and sell it today you would lose (28.00) from holding GoGold Resources or give up 22.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Metals Corp vs. GoGold Resources
Performance |
| Timeline |
| Sterling Metals Corp |
| GoGold Resources |
Sterling Metals and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Metals and GoGold Resources
The main advantage of trading using opposite Sterling Metals and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Metals position performs unexpectedly, GoGold Resources 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 GoGold Resources will offset losses from the drop in GoGold Resources' long position.| Sterling Metals vs. Progressive Planet Solutions | Sterling Metals vs. Durango Resources | Sterling Metals vs. Avarone Metals | Sterling Metals vs. Mundoro Capital |
| GoGold Resources vs. Regenx Tech Corp | GoGold Resources vs. P2 Gold | GoGold Resources vs. Max Resource Corp | GoGold Resources vs. Pacific Ridge Exploration |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| 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 | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |