Correlation Between Strikepoint Gold and Galantas Gold
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Galantas 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 Strikepoint Gold and Galantas Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strikepoint Gold and Galantas Gold Corp, you can compare the effects of market volatilities on Strikepoint Gold and Galantas 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 Strikepoint Gold with a short position of Galantas Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Galantas Gold.
Diversification Opportunities for Strikepoint Gold and Galantas Gold
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Strikepoint and Galantas is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Galantas Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galantas Gold Corp and Strikepoint 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 Strikepoint Gold are associated (or correlated) with Galantas Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galantas Gold Corp has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Galantas Gold go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Galantas Gold
Assuming the 90 days horizon Strikepoint Gold is expected to under-perform the Galantas Gold. In addition to that, Strikepoint Gold is 1.64 times more volatile than Galantas Gold Corp. It trades about -0.28 of its total potential returns per unit of risk. Galantas Gold Corp is currently generating about -0.14 per unit of volatility. If you would invest 10.00 in Galantas Gold Corp on September 4, 2024 and sell it today you would lose (2.00) from holding Galantas Gold Corp or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Strikepoint Gold vs. Galantas Gold Corp
Performance |
| Timeline |
| Strikepoint Gold |
| Galantas Gold Corp |
Strikepoint Gold and Galantas Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strikepoint Gold and Galantas Gold
The main advantage of trading using opposite Strikepoint Gold and Galantas Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, Galantas 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 Galantas Gold will offset losses from the drop in Galantas Gold's long position.| Strikepoint Gold vs. First Majestic Silver | Strikepoint Gold vs. Ivanhoe Energy | Strikepoint Gold vs. Orezone Gold Corp | Strikepoint Gold vs. Faraday Copper Corp |
| Galantas Gold vs. Grande Portage Resources | Galantas Gold vs. Stelmine Canada | Galantas Gold vs. Endurance Gold Corp | Galantas Gold vs. Dynasty 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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