Correlation Between American Pacific and Roscan Gold
Can any of the company-specific risk be diversified away by investing in both American Pacific and Roscan 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 American Pacific and Roscan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Pacific Mining and Roscan Gold Corp, you can compare the effects of market volatilities on American Pacific and Roscan 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 American Pacific with a short position of Roscan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Pacific and Roscan Gold.
Diversification Opportunities for American Pacific and Roscan Gold
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Roscan is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding American Pacific Mining and Roscan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roscan Gold Corp and American Pacific 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 American Pacific Mining are associated (or correlated) with Roscan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roscan Gold Corp has no effect on the direction of American Pacific i.e., American Pacific and Roscan Gold go up and down completely randomly.
Pair Corralation between American Pacific and Roscan Gold
Assuming the 90 days horizon American Pacific Mining is expected to generate 0.88 times more return on investment than Roscan Gold. However, American Pacific Mining is 1.13 times less risky than Roscan Gold. It trades about 0.01 of its potential returns per unit of risk. Roscan Gold Corp is currently generating about 0.0 per unit of risk. If you would invest 30.00 in American Pacific Mining on August 25, 2024 and sell it today you would lose (11.00) from holding American Pacific Mining or give up 36.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Pacific Mining vs. Roscan Gold Corp
Performance |
| Timeline |
| American Pacific Mining |
| Roscan Gold Corp |
American Pacific and Roscan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Pacific and Roscan Gold
The main advantage of trading using opposite American Pacific and Roscan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Pacific position performs unexpectedly, Roscan 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 Roscan Gold will offset losses from the drop in Roscan Gold's long position.| American Pacific vs. Aurion Resources | American Pacific vs. Liberty Gold Corp | American Pacific vs. Rio2 Limited | American Pacific vs. Orezone Gold Corp |
| Roscan Gold vs. Aurion Resources | Roscan Gold vs. Liberty Gold Corp | Roscan Gold vs. Rio2 Limited | Roscan Gold vs. Orezone 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |