Correlation Between Snowline Gold and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Snowline Gold and Cassiar 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 Snowline Gold and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snowline Gold Corp and Cassiar Gold Corp, you can compare the effects of market volatilities on Snowline Gold and Cassiar 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 Snowline Gold with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snowline Gold and Cassiar Gold.
Diversification Opportunities for Snowline Gold and Cassiar Gold
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Snowline and Cassiar is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Snowline Gold Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Snowline 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 Snowline Gold Corp are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Snowline Gold i.e., Snowline Gold and Cassiar Gold go up and down completely randomly.
Pair Corralation between Snowline Gold and Cassiar Gold
Assuming the 90 days horizon Snowline Gold Corp is expected to generate 0.65 times more return on investment than Cassiar Gold. However, Snowline Gold Corp is 1.53 times less risky than Cassiar Gold. It trades about -0.02 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 433.00 in Snowline Gold Corp on November 3, 2024 and sell it today you would lose (66.00) from holding Snowline Gold Corp or give up 15.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snowline Gold Corp vs. Cassiar Gold Corp
Performance |
| Timeline |
| Snowline Gold Corp |
| Cassiar Gold Corp |
Snowline Gold and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snowline Gold and Cassiar Gold
The main advantage of trading using opposite Snowline Gold and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snowline Gold position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Snowline Gold vs. Heliostar Metals | Snowline Gold vs. Independence Gold Corp | Snowline Gold vs. Westward Gold | Snowline Gold vs. Cabral Gold |
| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival Gold |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |