Correlation Between Worthington Steel and Equinox Gold
Can any of the company-specific risk be diversified away by investing in both Worthington Steel and Equinox 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 Worthington Steel and Equinox Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worthington Steel and Equinox Gold Corp, you can compare the effects of market volatilities on Worthington Steel and Equinox 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 Worthington Steel with a short position of Equinox Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worthington Steel and Equinox Gold.
Diversification Opportunities for Worthington Steel and Equinox Gold
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Worthington and Equinox is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Worthington Steel and Equinox Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinox Gold Corp and Worthington Steel 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 Worthington Steel are associated (or correlated) with Equinox Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinox Gold Corp has no effect on the direction of Worthington Steel i.e., Worthington Steel and Equinox Gold go up and down completely randomly.
Pair Corralation between Worthington Steel and Equinox Gold
Allowing for the 90-day total investment horizon Worthington Steel is expected to generate 0.88 times more return on investment than Equinox Gold. However, Worthington Steel is 1.13 times less risky than Equinox Gold. It trades about 0.19 of its potential returns per unit of risk. Equinox Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 3,980 in Worthington Steel on August 28, 2024 and sell it today you would earn a total of 523.00 from holding Worthington Steel or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Worthington Steel vs. Equinox Gold Corp
Performance |
| Timeline |
| Worthington Steel |
| Equinox Gold Corp |
Worthington Steel and Equinox Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worthington Steel and Equinox Gold
The main advantage of trading using opposite Worthington Steel and Equinox Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worthington Steel position performs unexpectedly, Equinox 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 Equinox Gold will offset losses from the drop in Equinox Gold's long position.| Worthington Steel vs. US Global Investors | Worthington Steel vs. Neogen | Worthington Steel vs. Alvarium Tiedemann Holdings | Worthington Steel vs. Freedom Holding Corp |
| Equinox Gold vs. Coeur Mining | Equinox Gold vs. B2Gold Corp | Equinox Gold vs. Sandstorm Gold Ltd | Equinox Gold vs. Pan American Silver |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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