Correlation Between Thesis Gold and Goliath Resources
Can any of the company-specific risk be diversified away by investing in both Thesis Gold and Goliath Resources 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 Thesis Gold and Goliath Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thesis Gold and Goliath Resources, you can compare the effects of market volatilities on Thesis Gold and Goliath Resources 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 Thesis Gold with a short position of Goliath Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thesis Gold and Goliath Resources.
Diversification Opportunities for Thesis Gold and Goliath Resources
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thesis and Goliath is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Thesis Gold and Goliath Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goliath Resources and Thesis 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 Thesis Gold are associated (or correlated) with Goliath Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goliath Resources has no effect on the direction of Thesis Gold i.e., Thesis Gold and Goliath Resources go up and down completely randomly.
Pair Corralation between Thesis Gold and Goliath Resources
Assuming the 90 days horizon Thesis Gold is expected to under-perform the Goliath Resources. In addition to that, Thesis Gold is 1.15 times more volatile than Goliath Resources. It trades about -0.02 of its total potential returns per unit of risk. Goliath Resources is currently generating about 0.05 per unit of volatility. If you would invest 99.00 in Goliath Resources on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Goliath Resources or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thesis Gold vs. Goliath Resources
Performance |
| Timeline |
| Thesis Gold |
| Goliath Resources |
Thesis Gold and Goliath Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thesis Gold and Goliath Resources
The main advantage of trading using opposite Thesis Gold and Goliath Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thesis Gold position performs unexpectedly, Goliath Resources 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 Goliath Resources will offset losses from the drop in Goliath Resources' long position.| Thesis Gold vs. Lion One Metals | Thesis Gold vs. Goliath Resources | Thesis Gold vs. Dolly Varden Silver | Thesis Gold vs. Nevada King Gold |
| Goliath Resources vs. Eskay Mining Corp | Goliath Resources vs. Lion One Metals | Goliath Resources vs. Cassiar Gold Corp | Goliath Resources 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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