Correlation Between Contact Gold and I 80

Can any of the company-specific risk be diversified away by investing in both Contact Gold and I 80 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 Contact Gold and I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Contact Gold Corp and I 80 Gold Corp, you can compare the effects of market volatilities on Contact Gold and I 80 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 Contact Gold with a short position of I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and I 80.

Diversification Opportunities for Contact Gold and I 80

0.39

Correlation Coefficient

Contact Gold  I 80

Weak diversification

The 3 months correlation between Contact and IAUX is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 Gold and Contact 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 Contact Gold Corp are associated (or correlated) with I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Contact Gold i.e., Contact Gold and I 80 go up and down completely randomly.

Pair Corralation between Contact Gold and I 80

If you would invest  1.38  in Contact Gold Corp on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Contact Gold Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Contact Gold Corp  vs.  I 80 Gold Corp

Contact Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

I 80 Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days I 80 Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Contact Gold and I 80

The main advantage of trading using opposite Contact Gold and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Gold position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.

The idea behind Contact Gold Corp and I 80 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.