Correlation Between Wesdome Gold and Lundin Gold
Can any of the company-specific risk be diversified away by investing in both Wesdome Gold and Lundin 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 Lundin 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 Lundin Gold, you can compare the effects of market volatilities on Wesdome Gold and Lundin 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 Lundin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesdome Gold and Lundin Gold.
Diversification Opportunities for Wesdome Gold and Lundin Gold
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wesdome and Lundin is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Wesdome Gold Mines and Lundin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin 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 Lundin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Gold has no effect on the direction of Wesdome Gold i.e., Wesdome Gold and Lundin Gold go up and down completely randomly.
Pair Corralation between Wesdome Gold and Lundin Gold
Assuming the 90 days horizon Wesdome Gold is expected to generate 1.84 times less return on investment than Lundin Gold. In addition to that, Wesdome Gold is 1.2 times more volatile than Lundin Gold. It trades about 0.04 of its total potential returns per unit of risk. Lundin Gold is currently generating about 0.08 per unit of volatility. If you would invest 985.00 in Lundin Gold on August 30, 2024 and sell it today you would earn a total of 1,345 from holding Lundin Gold or generate 136.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesdome Gold Mines vs. Lundin Gold
Performance |
| Timeline |
| Wesdome Gold Mines |
| Lundin Gold |
Wesdome Gold and Lundin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesdome Gold and Lundin Gold
The main advantage of trading using opposite Wesdome Gold and Lundin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesdome Gold position performs unexpectedly, Lundin 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 Lundin Gold will offset losses from the drop in Lundin Gold's long position.| Wesdome Gold vs. Victoria Gold Corp | Wesdome Gold vs. Cassiar Gold Corp | Wesdome Gold vs. Liberty Gold Corp | Wesdome Gold vs. I 80 Gold Corp |
| Lundin Gold vs. Vertiv Holdings Co | Lundin Gold vs. Nasdaq Inc | Lundin Gold vs. McDonalds | Lundin Gold vs. Walmart |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |