Correlation Between TomaGold and Asante Gold
Can any of the company-specific risk be diversified away by investing in both TomaGold and Asante 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 TomaGold and Asante Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TomaGold and Asante Gold, you can compare the effects of market volatilities on TomaGold and Asante 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 TomaGold with a short position of Asante Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of TomaGold and Asante Gold.
Diversification Opportunities for TomaGold and Asante Gold
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TomaGold and Asante is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding TomaGold and Asante Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asante Gold and TomaGold 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 TomaGold are associated (or correlated) with Asante Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asante Gold has no effect on the direction of TomaGold i.e., TomaGold and Asante Gold go up and down completely randomly.
Pair Corralation between TomaGold and Asante Gold
Assuming the 90 days horizon TomaGold is expected to generate 3.37 times more return on investment than Asante Gold. However, TomaGold is 3.37 times more volatile than Asante Gold. It trades about 0.07 of its potential returns per unit of risk. Asante Gold is currently generating about -0.23 per unit of risk. If you would invest 1.05 in TomaGold on September 14, 2024 and sell it today you would earn a total of 0.05 from holding TomaGold or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
TomaGold vs. Asante Gold
Performance |
| Timeline |
| TomaGold |
| Asante Gold |
TomaGold and Asante Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TomaGold and Asante Gold
The main advantage of trading using opposite TomaGold and Asante Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TomaGold position performs unexpectedly, Asante 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 Asante Gold will offset losses from the drop in Asante Gold's long position.| TomaGold vs. Advantage Solutions | TomaGold vs. Atlas Corp | TomaGold vs. PureCycle Technologies | TomaGold vs. WM Technology |
| Asante Gold vs. Advantage Solutions | Asante Gold vs. Atlas Corp | Asante Gold vs. PureCycle Technologies | Asante Gold vs. WM Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |