Correlation Between Almaden Minerals and Golden Minerals

Can any of the company-specific risk be diversified away by investing in both Almaden Minerals and Golden Minerals 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 Almaden Minerals and Golden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Almaden Minerals and Golden Minerals, you can compare the effects of market volatilities on Almaden Minerals and Golden Minerals 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 Almaden Minerals with a short position of Golden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almaden Minerals and Golden Minerals.

Diversification Opportunities for Almaden Minerals and Golden Minerals

0.0

Correlation Coefficient

Almaden Minerals  Golden Minerals

Pay attention - limited upside

The 3 months correlation between Almaden and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and Golden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Minerals and Almaden Minerals 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 Almaden Minerals are associated (or correlated) with Golden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Minerals has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and Golden Minerals go up and down completely randomly.

Pair Corralation between Almaden Minerals and Golden Minerals

If you would invest (100.00) in Golden Minerals on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Golden Minerals or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Almaden Minerals  vs.  Golden Minerals

Almaden Minerals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Almaden Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Almaden Minerals is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Golden Minerals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Golden Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Golden Minerals is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Almaden Minerals and Golden Minerals

The main advantage of trading using opposite Almaden Minerals and Golden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almaden Minerals position performs unexpectedly, Golden Minerals 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 Golden Minerals will offset losses from the drop in Golden Minerals' long position.

The idea behind Almaden Minerals and Golden Minerals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.