Correlation Between Vendetta Mining and Golden Lake
Can any of the company-specific risk be diversified away by investing in both Vendetta Mining and Golden Lake 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 Vendetta Mining and Golden Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vendetta Mining Corp and Golden Lake Exploration, you can compare the effects of market volatilities on Vendetta Mining and Golden Lake 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 Vendetta Mining with a short position of Golden Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vendetta Mining and Golden Lake.
Diversification Opportunities for Vendetta Mining and Golden Lake
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vendetta and Golden is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Vendetta Mining Corp and Golden Lake Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Lake Exploration and Vendetta Mining 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 Vendetta Mining Corp are associated (or correlated) with Golden Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Lake Exploration has no effect on the direction of Vendetta Mining i.e., Vendetta Mining and Golden Lake go up and down completely randomly.
Pair Corralation between Vendetta Mining and Golden Lake
Assuming the 90 days horizon Vendetta Mining Corp is expected to generate 1.42 times more return on investment than Golden Lake. However, Vendetta Mining is 1.42 times more volatile than Golden Lake Exploration. It trades about 0.07 of its potential returns per unit of risk. Golden Lake Exploration is currently generating about -0.18 per unit of risk. If you would invest 0.74 in Vendetta Mining Corp on August 25, 2024 and sell it today you would earn a total of 0.02 from holding Vendetta Mining Corp or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vendetta Mining Corp vs. Golden Lake Exploration
Performance |
| Timeline |
| Vendetta Mining Corp |
| Golden Lake Exploration |
Vendetta Mining and Golden Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vendetta Mining and Golden Lake
The main advantage of trading using opposite Vendetta Mining and Golden Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vendetta Mining position performs unexpectedly, Golden Lake 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 Golden Lake will offset losses from the drop in Golden Lake's long position.| Vendetta Mining vs. Ascendant Resources | Vendetta Mining vs. Cantex Mine Development | Vendetta Mining vs. Amarc Resources | Vendetta Mining vs. Sterling Metals Corp |
| Golden Lake vs. Norra Metals Corp | Golden Lake vs. ZincX Resources Corp | Golden Lake vs. Nuinsco Resources Limited | Golden Lake vs. South Star Battery |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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