Correlation Between Wesdome Gold and Asante Gold
Can any of the company-specific risk be diversified away by investing in both Wesdome Gold 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 Wesdome Gold and Asante Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesdome Gold Mines and Asante Gold, you can compare the effects of market volatilities on Wesdome Gold 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 Wesdome Gold with a short position of Asante Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesdome Gold and Asante Gold.
Diversification Opportunities for Wesdome Gold and Asante Gold
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wesdome and Asante is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Wesdome Gold Mines and Asante Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asante Gold and Wesdome 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 Wesdome Gold Mines 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 Wesdome Gold i.e., Wesdome Gold and Asante Gold go up and down completely randomly.
Pair Corralation between Wesdome Gold and Asante Gold
Assuming the 90 days horizon Wesdome Gold Mines is expected to generate 0.77 times more return on investment than Asante Gold. However, Wesdome Gold Mines is 1.3 times less risky than Asante Gold. It trades about 0.07 of its potential returns per unit of risk. Asante Gold is currently generating about 0.0 per unit of risk. If you would invest 510.00 in Wesdome Gold Mines on August 26, 2024 and sell it today you would earn a total of 352.00 from holding Wesdome Gold Mines or generate 69.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesdome Gold Mines vs. Asante Gold
Performance |
| Timeline |
| Wesdome Gold Mines |
| Asante Gold |
Wesdome Gold and Asante Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesdome Gold and Asante Gold
The main advantage of trading using opposite Wesdome Gold and Asante Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesdome Gold 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.| Wesdome Gold vs. Ascendant Resources | Wesdome Gold vs. Cantex Mine Development | Wesdome Gold vs. Amarc Resources | Wesdome Gold vs. Sterling Metals Corp |
| Asante Gold vs. Ascendant Resources | Asante Gold vs. Cantex Mine Development | Asante Gold vs. Amarc Resources | Asante Gold vs. Sterling Metals 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |