Correlation Between StrikePoint Gold and Great Western
Can any of the company-specific risk be diversified away by investing in both StrikePoint Gold and Great Western 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 Great Western into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StrikePoint Gold and Great Western Minerals, you can compare the effects of market volatilities on StrikePoint Gold and Great Western 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 Great Western. Check out your portfolio center. Please also check ongoing floating volatility patterns of StrikePoint Gold and Great Western.
Diversification Opportunities for StrikePoint Gold and Great Western
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between StrikePoint and Great is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding StrikePoint Gold and Great Western Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Western Minerals 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 Great Western. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Western Minerals has no effect on the direction of StrikePoint Gold i.e., StrikePoint Gold and Great Western go up and down completely randomly.
Pair Corralation between StrikePoint Gold and Great Western
Assuming the 90 days horizon StrikePoint Gold is expected to generate 1.77 times more return on investment than Great Western. However, StrikePoint Gold is 1.77 times more volatile than Great Western Minerals. It trades about 0.16 of its potential returns per unit of risk. Great Western Minerals is currently generating about 0.09 per unit of risk. If you would invest 19.00 in StrikePoint Gold on October 22, 2024 and sell it today you would lose (5.00) from holding StrikePoint Gold or give up 26.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
StrikePoint Gold vs. Great Western Minerals
Performance |
| Timeline |
| StrikePoint Gold |
| Great Western Minerals |
StrikePoint Gold and Great Western Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StrikePoint Gold and Great Western
The main advantage of trading using opposite StrikePoint Gold and Great Western positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StrikePoint Gold position performs unexpectedly, Great Western 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 Great Western will offset losses from the drop in Great Western's long position.| StrikePoint Gold vs. Commerce Resources Corp | StrikePoint Gold vs. Great Western Minerals | StrikePoint Gold vs. Silver Elephant Mining | StrikePoint Gold vs. Eskay Mining Corp |
| Great Western vs. Commerce Resources Corp | Great Western vs. StrikePoint Gold | Great Western vs. Silver Elephant Mining | Great Western vs. Eskay Mining 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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