Correlation Between White Gold and Irving Resources
Can any of the company-specific risk be diversified away by investing in both White Gold and Irving 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 Irving 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 Irving Resources, you can compare the effects of market volatilities on White Gold and Irving 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 Irving Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Gold and Irving Resources.
Diversification Opportunities for White Gold and Irving Resources
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between White and Irving is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding White Gold Corp and Irving Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Irving Resources 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 Irving Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Irving Resources has no effect on the direction of White Gold i.e., White Gold and Irving Resources go up and down completely randomly.
Pair Corralation between White Gold and Irving Resources
Assuming the 90 days horizon White Gold Corp is expected to under-perform the Irving Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, White Gold Corp is 1.13 times less risky than Irving Resources. The otc stock trades about -0.27 of its potential returns per unit of risk. The Irving Resources is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Irving Resources on August 29, 2024 and sell it today you would lose (6.00) from holding Irving Resources or give up 23.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
White Gold Corp vs. Irving Resources
Performance |
| Timeline |
| White Gold Corp |
| Irving Resources |
White Gold and Irving Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Gold and Irving Resources
The main advantage of trading using opposite White Gold and Irving Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Gold position performs unexpectedly, Irving 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 Irving Resources will offset losses from the drop in Irving Resources' long position.| White Gold vs. Puma Exploration | White Gold vs. Endurance Gold | White Gold vs. Grande Portage Resources | White Gold vs. Altamira Gold Corp |
| Irving Resources vs. Lion One Metals | Irving Resources vs. Headwater Gold | Irving Resources vs. Novo Resources Corp | Irving Resources vs. Snowline Gold 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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