Correlation Between Sutter Gold and New Gold
Can any of the company-specific risk be diversified away by investing in both Sutter Gold and New 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 Sutter Gold and New Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sutter Gold Mining and New Gold, you can compare the effects of market volatilities on Sutter Gold and New 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 Sutter Gold with a short position of New Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sutter Gold and New Gold.
Diversification Opportunities for Sutter Gold and New Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sutter and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sutter Gold Mining and New Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Gold and Sutter 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 Sutter Gold Mining are associated (or correlated) with New Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Gold has no effect on the direction of Sutter Gold i.e., Sutter Gold and New Gold go up and down completely randomly.
Pair Corralation between Sutter Gold and New Gold
If you would invest 0.10 in Sutter Gold Mining on October 7, 2024 and sell it today you would earn a total of 0.00 from holding Sutter Gold Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sutter Gold Mining vs. New Gold
Performance |
| Timeline |
| Sutter Gold Mining |
| New Gold |
Sutter Gold and New Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sutter Gold and New Gold
The main advantage of trading using opposite Sutter Gold and New Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sutter Gold position performs unexpectedly, New 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 New Gold will offset losses from the drop in New Gold's long position.| Sutter Gold vs. New Gold | Sutter Gold vs. Eldorado Gold Corp | Sutter Gold vs. Kinross Gold | Sutter Gold vs. Harmony Gold Mining |
| New Gold vs. Eldorado Gold Corp | New Gold vs. Kinross Gold | New Gold vs. Harmony Gold Mining | New Gold vs. Coeur Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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