Correlation Between White Gold and GoldMining
Can any of the company-specific risk be diversified away by investing in both White Gold and GoldMining 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 White Gold and GoldMining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between White Gold Corp and GoldMining, you can compare the effects of market volatilities on White Gold and GoldMining 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 White Gold with a short position of GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Gold and GoldMining.
Diversification Opportunities for White Gold and GoldMining
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between White and GoldMining is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding White Gold Corp and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining and White 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 White Gold Corp are associated (or correlated) with GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of White Gold i.e., White Gold and GoldMining go up and down completely randomly.
Pair Corralation between White Gold and GoldMining
Assuming the 90 days horizon White Gold Corp is expected to under-perform the GoldMining. In addition to that, White Gold is 1.92 times more volatile than GoldMining. It trades about -0.08 of its total potential returns per unit of risk. GoldMining is currently generating about -0.05 per unit of volatility. If you would invest 130.00 in GoldMining on August 31, 2024 and sell it today you would lose (5.00) from holding GoldMining or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
White Gold Corp vs. GoldMining
Performance |
| Timeline |
| White Gold Corp |
| GoldMining |
White Gold and GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Gold and GoldMining
The main advantage of trading using opposite White Gold and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Gold position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining's long position.| White Gold vs. Sokoman Minerals Corp | White Gold vs. Royal Road Minerals | White Gold vs. Labrador Gold Corp |
| GoldMining vs. First Mining Gold | GoldMining vs. Liberty Gold Corp | GoldMining vs. Equinox Gold Corp | GoldMining vs. SilverCrest Metals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |