Correlation Between Unigold and Monument Mining
Can any of the company-specific risk be diversified away by investing in both Unigold and Monument 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 Unigold and Monument Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unigold and Monument Mining Limited, you can compare the effects of market volatilities on Unigold and Monument 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 Unigold with a short position of Monument Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigold and Monument Mining.
Diversification Opportunities for Unigold and Monument Mining
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Unigold and Monument is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Unigold and Monument Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Mining and Unigold 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 Unigold are associated (or correlated) with Monument Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Mining has no effect on the direction of Unigold i.e., Unigold and Monument Mining go up and down completely randomly.
Pair Corralation between Unigold and Monument Mining
Assuming the 90 days horizon Unigold is expected to generate 1.82 times more return on investment than Monument Mining. However, Unigold is 1.82 times more volatile than Monument Mining Limited. It trades about 0.04 of its potential returns per unit of risk. Monument Mining Limited is currently generating about 0.08 per unit of risk. If you would invest 6.00 in Unigold on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Unigold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unigold vs. Monument Mining Limited
Performance |
| Timeline |
| Unigold |
| Monument Mining |
Unigold and Monument Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unigold and Monument Mining
The main advantage of trading using opposite Unigold and Monument Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigold position performs unexpectedly, Monument 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 Monument Mining will offset losses from the drop in Monument Mining's long position.| Unigold vs. Algoma Steel Group | Unigold vs. Champion Iron | Unigold vs. International Zeolite Corp | Unigold vs. European Residential Real |
| Monument Mining vs. Majestic Gold Corp | Monument Mining vs. Gunpoint Exploration | Monument Mining vs. Q Gold Resources | Monument Mining vs. MAS 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |