Correlation Between Advance Gold and Antioquia Gold

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Advance Gold and Antioquia 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 Advance Gold and Antioquia Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advance Gold Corp and Antioquia Gold, you can compare the effects of market volatilities on Advance Gold and Antioquia 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 Advance Gold with a short position of Antioquia Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance Gold and Antioquia Gold.

Diversification Opportunities for Advance Gold and Antioquia Gold

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Advance Gold and Antioquia Gold

If you would invest  1.10  in Antioquia Gold on August 31, 2024 and sell it today you would earn a total of  0.90  from holding Antioquia Gold or generate 81.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Advance Gold Corp  vs.  Antioquia Gold

 Performance 
       Timeline  
Advance Gold Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Advance Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Advance Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Antioquia Gold 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Antioquia Gold are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Antioquia Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Advance Gold and Antioquia Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Advance Gold and Antioquia Gold

The main advantage of trading using opposite Advance Gold and Antioquia Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Gold position performs unexpectedly, Antioquia 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 Antioquia Gold will offset losses from the drop in Antioquia Gold's long position.
The idea behind Advance Gold Corp and Antioquia Gold 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.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
CEOs Directory
Screen CEOs from public companies around the world