Correlation Between Antilles Gold and 1911 Gold

Can any of the company-specific risk be diversified away by investing in both Antilles Gold and 1911 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 Antilles Gold and 1911 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Antilles Gold Limited and 1911 Gold Corp, you can compare the effects of market volatilities on Antilles Gold and 1911 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 Antilles Gold with a short position of 1911 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antilles Gold and 1911 Gold.

Diversification Opportunities for Antilles Gold and 1911 Gold

0.01

Correlation Coefficient

Antilles Gold  1911 Gold

Significant diversification

The 3 months correlation between Antilles and 1911 is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Antilles Gold Limited and 1911 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1911 Gold Corp and Antilles 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 Antilles Gold Limited are associated (or correlated) with 1911 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1911 Gold Corp has no effect on the direction of Antilles Gold i.e., Antilles Gold and 1911 Gold go up and down completely randomly.

Pair Corralation between Antilles Gold and 1911 Gold

Assuming the 90 days horizon Antilles Gold Limited is expected to generate 10.05 times more return on investment than 1911 Gold. However, Antilles Gold is 10.05 times more volatile than 1911 Gold Corp. It trades about 0.13 of its potential returns per unit of risk. 1911 Gold Corp is currently generating about 0.04 per unit of risk. If you would invest  6.40  in Antilles Gold Limited on October 4, 2024 and sell it today you would lose (6.28) from holding Antilles Gold Limited or give up 98.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Antilles Gold Limited  vs.  1911 Gold Corp

Antilles Gold Limited

Risk-Adjusted Performance

4 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Antilles Gold Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Antilles Gold reported solid returns over the last few months and may actually be approaching a breakup point.

1911 Gold Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 1911 Gold Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, 1911 Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Antilles Gold and 1911 Gold

The main advantage of trading using opposite Antilles Gold and 1911 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antilles Gold position performs unexpectedly, 1911 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 1911 Gold will offset losses from the drop in 1911 Gold's long position.

The idea behind Antilles Gold Limited and 1911 Gold Corp 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.