Correlation Between Sirios Resources and Antioquia Gold
Can any of the company-specific risk be diversified away by investing in both Sirios Resources and Antioquia 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 Sirios Resources and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sirios Resources and Antioquia Gold, you can compare the effects of market volatilities on Sirios Resources and Antioquia 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 Sirios Resources with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sirios Resources and Antioquia Gold.
Diversification Opportunities for Sirios Resources and Antioquia Gold
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sirios and Antioquia is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sirios Resources and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold and Sirios Resources 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 Sirios Resources are associated (or correlated) with Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of Sirios Resources i.e., Sirios Resources and Antioquia Gold go up and down completely randomly.
Pair Corralation between Sirios Resources and Antioquia Gold
Assuming the 90 days horizon Sirios Resources is expected to under-perform the Antioquia Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Sirios Resources is 6.63 times less risky than Antioquia Gold. The otc stock trades about -0.11 of its potential returns per unit of risk. The Antioquia Gold is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Antioquia Gold on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sirios Resources vs. Antioquia Gold
Performance |
| Timeline |
| Sirios Resources |
| Antioquia Gold |
Sirios Resources and Antioquia Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sirios Resources and Antioquia Gold
The main advantage of trading using opposite Sirios Resources and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sirios Resources position performs unexpectedly, Antioquia 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.| Sirios Resources vs. Red Pine Exploration | Sirios Resources vs. Precipitate Gold Corp | Sirios Resources vs. Spanish Mountain Gold | Sirios Resources vs. Bravada Gold |
| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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