Correlation Between White Gold and Nighthawk Gold
Can any of the company-specific risk be diversified away by investing in both White Gold and Nighthawk 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 White Gold and Nighthawk Gold 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 Nighthawk Gold Corp, you can compare the effects of market volatilities on White Gold and Nighthawk 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 White Gold with a short position of Nighthawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Gold and Nighthawk Gold.
Diversification Opportunities for White Gold and Nighthawk Gold
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between White and Nighthawk is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding White Gold Corp and Nighthawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nighthawk Gold 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 Nighthawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nighthawk Gold Corp has no effect on the direction of White Gold i.e., White Gold and Nighthawk Gold go up and down completely randomly.
Pair Corralation between White Gold and Nighthawk Gold
Assuming the 90 days horizon White Gold Corp is expected to under-perform the Nighthawk Gold. In addition to that, White Gold is 1.11 times more volatile than Nighthawk Gold Corp. It trades about 0.0 of its total potential returns per unit of risk. Nighthawk Gold Corp is currently generating about 0.14 per unit of volatility. If you would invest 32.00 in Nighthawk Gold Corp on October 25, 2024 and sell it today you would earn a total of 9.00 from holding Nighthawk Gold Corp or generate 28.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 9.11% |
| Values | Daily Returns |
White Gold Corp vs. Nighthawk Gold Corp
Performance |
| Timeline |
| White Gold Corp |
| Nighthawk Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
White Gold and Nighthawk Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Gold and Nighthawk Gold
The main advantage of trading using opposite White Gold and Nighthawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Gold position performs unexpectedly, Nighthawk 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 Nighthawk Gold will offset losses from the drop in Nighthawk Gold's long position.| White Gold vs. Puma Exploration | White Gold vs. Endurance Gold | White Gold vs. Grande Portage Resources | White Gold vs. Altamira Gold Corp |
| Nighthawk Gold vs. Endurance Gold | Nighthawk Gold vs. Red Pine Exploration | Nighthawk Gold vs. Puma Exploration | Nighthawk Gold vs. White 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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