Correlation Between White Gold and Minera Alamos
Can any of the company-specific risk be diversified away by investing in both White Gold and Minera Alamos 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 Minera Alamos 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 Minera Alamos, you can compare the effects of market volatilities on White Gold and Minera Alamos 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 Minera Alamos. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Gold and Minera Alamos.
Diversification Opportunities for White Gold and Minera Alamos
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between White and Minera is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding White Gold Corp and Minera Alamos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minera Alamos 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 Minera Alamos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minera Alamos has no effect on the direction of White Gold i.e., White Gold and Minera Alamos go up and down completely randomly.
Pair Corralation between White Gold and Minera Alamos
Assuming the 90 days horizon White Gold Corp is expected to generate 1.33 times more return on investment than Minera Alamos. However, White Gold is 1.33 times more volatile than Minera Alamos. It trades about 0.01 of its potential returns per unit of risk. Minera Alamos is currently generating about 0.0 per unit of risk. If you would invest 21.00 in White Gold Corp on September 14, 2024 and sell it today you would lose (5.00) from holding White Gold Corp or give up 23.81% 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. Minera Alamos
Performance |
| Timeline |
| White Gold Corp |
| Minera Alamos |
White Gold and Minera Alamos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Gold and Minera Alamos
The main advantage of trading using opposite White Gold and Minera Alamos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Gold position performs unexpectedly, Minera Alamos 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 Minera Alamos will offset losses from the drop in Minera Alamos' long position.| White Gold vs. Puma Exploration | White Gold vs. Endurance Gold | White Gold vs. Grande Portage Resources | White Gold vs. Altamira Gold Corp |
| Minera Alamos vs. Aurion Resources | Minera Alamos vs. Minaurum Gold | Minera Alamos vs. Rio2 Limited | Minera Alamos vs. Roscan 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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