Correlation Between International Tower and Loncor Gold
Can any of the company-specific risk be diversified away by investing in both International Tower and Loncor 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 International Tower and Loncor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Tower Hill and Loncor Gold, you can compare the effects of market volatilities on International Tower and Loncor 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 International Tower with a short position of Loncor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Tower and Loncor Gold.
Diversification Opportunities for International Tower and Loncor Gold
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Loncor is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding International Tower Hill and Loncor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loncor Gold and International Tower 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 International Tower Hill are associated (or correlated) with Loncor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loncor Gold has no effect on the direction of International Tower i.e., International Tower and Loncor Gold go up and down completely randomly.
Pair Corralation between International Tower and Loncor Gold
If you would invest 44.00 in International Tower Hill on October 25, 2024 and sell it today you would earn a total of 5.32 from holding International Tower Hill or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
International Tower Hill vs. Loncor Gold
Performance |
| Timeline |
| International Tower Hill |
| Loncor Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Tower and Loncor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Tower and Loncor Gold
The main advantage of trading using opposite International Tower and Loncor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Tower position performs unexpectedly, Loncor 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 Loncor Gold will offset losses from the drop in Loncor Gold's long position.| International Tower vs. Vista Gold | International Tower vs. Paramount Gold Nevada | International Tower vs. Tanzanian Royalty Exploration |
| Loncor Gold vs. Galiano Gold | Loncor Gold vs. Brunswick Exploration | Loncor Gold vs. B2Gold Corp | Loncor Gold vs. Japan Gold 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |