Correlation Between Bluestone Resources and C2C Gold

Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and C2C 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 Bluestone Resources and C2C Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bluestone Resources and C2C Gold Corp, you can compare the effects of market volatilities on Bluestone Resources and C2C 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 Bluestone Resources with a short position of C2C Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and C2C Gold.

Diversification Opportunities for Bluestone Resources and C2C Gold

0.66

Correlation Coefficient

Bluestone Resources  C2C Gold

Poor diversification

The 3 months correlation between Bluestone and C2C is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and C2C Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C2C Gold Corp and Bluestone Resources 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 Bluestone Resources are associated (or correlated) with C2C Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C2C Gold Corp has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and C2C Gold go up and down completely randomly.

Pair Corralation between Bluestone Resources and C2C Gold

Assuming the 90 days horizon Bluestone Resources is expected to under-perform the C2C Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Bluestone Resources is 1.5 times less risky than C2C Gold. The otc stock trades about -0.01 of its potential returns per unit of risk. The C2C Gold Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  11.00  in C2C Gold Corp on September 3, 2024 and sell it today you would lose (2.77) from holding C2C Gold Corp or give up 25.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bluestone Resources  vs.  C2C Gold Corp

Bluestone Resources

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bluestone Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Bluestone Resources may actually be approaching a critical reversion point that can send shares even higher in January 2025.

C2C Gold Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in C2C Gold Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, C2C Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bluestone Resources and C2C Gold

The main advantage of trading using opposite Bluestone Resources and C2C Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, C2C 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 C2C Gold will offset losses from the drop in C2C Gold's long position.

The idea behind Bluestone Resources and C2C 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.