Correlation Between Westhaven Gold and I 80
Can any of the company-specific risk be diversified away by investing in both Westhaven Gold and I 80 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 Westhaven Gold and I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westhaven Gold Corp and I 80 Gold Corp, you can compare the effects of market volatilities on Westhaven Gold and I 80 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 Westhaven Gold with a short position of I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westhaven Gold and I 80.
Diversification Opportunities for Westhaven Gold and I 80
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Westhaven and IAUX is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Westhaven Gold Corp and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 Gold and Westhaven 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 Westhaven Gold Corp are associated (or correlated) with I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Westhaven Gold i.e., Westhaven Gold and I 80 go up and down completely randomly.
Pair Corralation between Westhaven Gold and I 80
Assuming the 90 days horizon Westhaven Gold Corp is expected to under-perform the I 80. But the pink sheet apears to be less risky and, when comparing its historical volatility, Westhaven Gold Corp is 2.6 times less risky than I 80. The pink sheet trades about -0.09 of its potential returns per unit of risk. The I 80 Gold Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 105.00 in I 80 Gold Corp on September 1, 2024 and sell it today you would lose (39.00) from holding I 80 Gold Corp or give up 37.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Westhaven Gold Corp vs. I 80 Gold Corp
Performance |
| Timeline |
| Westhaven Gold Corp |
| I 80 Gold |
Westhaven Gold and I 80 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westhaven Gold and I 80
The main advantage of trading using opposite Westhaven Gold and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westhaven Gold position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.| Westhaven Gold vs. Precipitate Gold Corp | Westhaven Gold vs. Hummingbird Resources PLC | Westhaven Gold vs. Klondike Gold Corp | Westhaven Gold vs. Exploits Discovery Corp |
| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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