Correlation Between Antioquia Gold and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Cassiar 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 Antioquia Gold and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Cassiar Gold Corp, you can compare the effects of market volatilities on Antioquia Gold and Cassiar 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 Antioquia Gold with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Cassiar Gold.
Diversification Opportunities for Antioquia Gold and Cassiar Gold
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Antioquia and Cassiar is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Antioquia 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 Antioquia Gold are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Cassiar Gold go up and down completely randomly.
Pair Corralation between Antioquia Gold and Cassiar Gold
Assuming the 90 days horizon Antioquia Gold is expected to generate 25.59 times more return on investment than Cassiar Gold. However, Antioquia Gold is 25.59 times more volatile than Cassiar Gold Corp. It trades about 0.11 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about 0.07 per unit of risk. If you would invest 0.70 in Antioquia Gold on December 30, 2024 and sell it today you would earn a total of 0.80 from holding Antioquia Gold or generate 114.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.38% |
Values | Daily Returns |
Antioquia Gold vs. Cassiar Gold Corp
Performance |
Timeline |
Antioquia Gold |
Cassiar Gold Corp |
Antioquia Gold and Cassiar Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Antioquia Gold and Cassiar Gold
The main advantage of trading using opposite Antioquia Gold and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold Corp |
Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival Gold |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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