Correlation Between US Gold and Guskin Gold
Can any of the company-specific risk be diversified away by investing in both US Gold and Guskin 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 US Gold and Guskin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Gold Corp and Guskin Gold Corp, you can compare the effects of market volatilities on US Gold and Guskin 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 US Gold with a short position of Guskin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Gold and Guskin Gold.
Diversification Opportunities for US Gold and Guskin Gold
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USAU and Guskin is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding US Gold Corp and Guskin Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guskin Gold Corp and US 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 US Gold Corp are associated (or correlated) with Guskin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guskin Gold Corp has no effect on the direction of US Gold i.e., US Gold and Guskin Gold go up and down completely randomly.
Pair Corralation between US Gold and Guskin Gold
If you would invest 594.00 in US Gold Corp on September 13, 2024 and sell it today you would earn a total of 138.00 from holding US Gold Corp or generate 23.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
US Gold Corp vs. Guskin Gold Corp
Performance |
| Timeline |
| US Gold Corp |
| Guskin Gold Corp |
US Gold and Guskin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Gold and Guskin Gold
The main advantage of trading using opposite US Gold and Guskin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Gold position performs unexpectedly, Guskin 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 Guskin Gold will offset losses from the drop in Guskin Gold's long position.| US Gold vs. Labrador Gold Corp | US Gold vs. Aurion Resources | US Gold vs. Puma Exploration | US Gold vs. Golden Star Resource |
| Guskin Gold vs. GMV Minerals | Guskin Gold vs. Antilles Gold Limited | Guskin Gold vs. Q2 Metals Corp | Guskin Gold vs. Joshua Gold Resources |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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