Correlation Between Stone Gold and Prime Mining
Can any of the company-specific risk be diversified away by investing in both Stone Gold and Prime Mining 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 Stone Gold and Prime Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Gold and Prime Mining Corp, you can compare the effects of market volatilities on Stone Gold and Prime Mining 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 Stone Gold with a short position of Prime Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Gold and Prime Mining.
Diversification Opportunities for Stone Gold and Prime Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and Prime is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Gold and Prime Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Mining Corp and Stone 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 Stone Gold are associated (or correlated) with Prime Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Mining Corp has no effect on the direction of Stone Gold i.e., Stone Gold and Prime Mining go up and down completely randomly.
Pair Corralation between Stone Gold and Prime Mining
If you would invest 109.00 in Prime Mining Corp on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Prime Mining Corp or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Stone Gold vs. Prime Mining Corp
Performance |
| Timeline |
| Stone Gold |
| Prime Mining Corp |
Stone Gold and Prime Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Gold and Prime Mining
The main advantage of trading using opposite Stone Gold and Prime Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Gold position performs unexpectedly, Prime Mining 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 Prime Mining will offset losses from the drop in Prime Mining's long position.| Stone Gold vs. BCM Resources | Stone Gold vs. Magna Mining | Stone Gold vs. Fathom Nickel | Stone Gold vs. York Harbour Metals |
| Prime Mining vs. Kenorland Minerals | Prime Mining vs. Canstar Resources | Prime Mining vs. Euro Manganese | Prime Mining vs. Chalice Mining Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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