Correlation Between Antilles Gold and Thor Explorations
Can any of the company-specific risk be diversified away by investing in both Antilles Gold and Thor Explorations 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 Thor Explorations 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 Thor Explorations, you can compare the effects of market volatilities on Antilles Gold and Thor Explorations 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 Thor Explorations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antilles Gold and Thor Explorations.
Diversification Opportunities for Antilles Gold and Thor Explorations
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Antilles and Thor is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Antilles Gold Limited and Thor Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Explorations 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 Thor Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Explorations has no effect on the direction of Antilles Gold i.e., Antilles Gold and Thor Explorations go up and down completely randomly.
Pair Corralation between Antilles Gold and Thor Explorations
Assuming the 90 days horizon Antilles Gold Limited is expected to generate 6.5 times more return on investment than Thor Explorations. However, Antilles Gold is 6.5 times more volatile than Thor Explorations. It trades about 0.11 of its potential returns per unit of risk. Thor Explorations is currently generating about 0.17 per unit of risk. If you would invest 0.23 in Antilles Gold Limited on December 29, 2024 and sell it today you would earn a total of 0.07 from holding Antilles Gold Limited or generate 30.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.83% |
Values | Daily Returns |
Antilles Gold Limited vs. Thor Explorations
Performance |
Timeline |
Antilles Gold Limited |
Thor Explorations |
Antilles Gold and Thor Explorations Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Antilles Gold and Thor Explorations
The main advantage of trading using opposite Antilles Gold and Thor Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antilles Gold position performs unexpectedly, Thor Explorations 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 Thor Explorations will offset losses from the drop in Thor Explorations' long position.Antilles Gold vs. Genius Metals | Antilles Gold vs. Aurelius Minerals | Antilles Gold vs. Quebec Precious Metals | Antilles Gold vs. Dakota Gold Corp |
Thor Explorations vs. Cabral Gold | Thor Explorations vs. Cartier Resources | Thor Explorations vs. Lion One Metals | Thor Explorations vs. Equinox Gold Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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