Correlation Between White Gold and Integra Resources
Can any of the company-specific risk be diversified away by investing in both White Gold and Integra Resources 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 Integra Resources 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 Integra Resources Corp, you can compare the effects of market volatilities on White Gold and Integra Resources 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 Integra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Gold and Integra Resources.
Diversification Opportunities for White Gold and Integra Resources
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between White and Integra is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding White Gold Corp and Integra Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Resources Corp 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 Integra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Resources Corp has no effect on the direction of White Gold i.e., White Gold and Integra Resources go up and down completely randomly.
Pair Corralation between White Gold and Integra Resources
Assuming the 90 days horizon White Gold Corp is expected to generate 1.3 times more return on investment than Integra Resources. However, White Gold is 1.3 times more volatile than Integra Resources Corp. It trades about 0.0 of its potential returns per unit of risk. Integra Resources Corp is currently generating about -0.01 per unit of risk. If you would invest 32.00 in White Gold Corp on August 25, 2024 and sell it today you would lose (10.00) from holding White Gold Corp or give up 31.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
White Gold Corp vs. Integra Resources Corp
Performance |
| Timeline |
| White Gold Corp |
| Integra Resources Corp |
White Gold and Integra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Gold and Integra Resources
The main advantage of trading using opposite White Gold and Integra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Gold position performs unexpectedly, Integra Resources 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 Integra Resources will offset losses from the drop in Integra Resources' long position.| White Gold vs. Sokoman Minerals Corp | White Gold vs. Royal Road Minerals | White Gold vs. Labrador Gold Corp |
| Integra Resources vs. Liberty Gold Corp | Integra Resources vs. Rio2 | Integra Resources vs. Revival Gold | Integra Resources vs. O3 Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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