Correlation Between Strikepoint Gold and Outcrop Gold
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Outcrop 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 Outcrop 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 Outcrop Gold Corp, you can compare the effects of market volatilities on Strikepoint Gold and Outcrop 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 Outcrop Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Outcrop Gold.
Diversification Opportunities for Strikepoint Gold and Outcrop Gold
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Strikepoint and Outcrop is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Outcrop Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outcrop 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 Outcrop Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outcrop Gold Corp has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Outcrop Gold go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Outcrop Gold
Assuming the 90 days horizon Strikepoint Gold is expected to under-perform the Outcrop Gold. In addition to that, Strikepoint Gold is 1.1 times more volatile than Outcrop Gold Corp. It trades about -0.02 of its total potential returns per unit of risk. Outcrop Gold Corp is currently generating about 0.15 per unit of volatility. If you would invest 20.00 in Outcrop Gold Corp on November 2, 2024 and sell it today you would earn a total of 3.00 from holding Outcrop Gold Corp or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strikepoint Gold vs. Outcrop Gold Corp
Performance |
| Timeline |
| Strikepoint Gold |
| Outcrop Gold Corp |
Strikepoint Gold and Outcrop Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strikepoint Gold and Outcrop Gold
The main advantage of trading using opposite Strikepoint Gold and Outcrop Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, Outcrop 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 Outcrop Gold will offset losses from the drop in Outcrop Gold's long position.| Strikepoint Gold vs. Monarca Minerals | Strikepoint Gold vs. Outcrop Gold Corp | Strikepoint Gold vs. Grande Portage Resources | Strikepoint Gold vs. Klondike Silver Corp |
| Outcrop Gold vs. Strikepoint Gold | Outcrop Gold vs. Kootenay Silver | Outcrop Gold vs. Kore Mining | Outcrop Gold vs. Blackrock Silver 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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