Correlation Between Galiano Gold and US Gold
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and US 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 Galiano Gold and US Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galiano Gold and US Gold Corp, you can compare the effects of market volatilities on Galiano Gold and US 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 Galiano Gold with a short position of US Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and US Gold.
Diversification Opportunities for Galiano Gold and US Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Galiano and USAU is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and US Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Gold Corp and Galiano 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 Galiano Gold are associated (or correlated) with US Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Gold Corp has no effect on the direction of Galiano Gold i.e., Galiano Gold and US Gold go up and down completely randomly.
Pair Corralation between Galiano Gold and US Gold
Considering the 90-day investment horizon Galiano Gold is expected to generate 19.12 times less return on investment than US Gold. But when comparing it to its historical volatility, Galiano Gold is 1.21 times less risky than US Gold. It trades about 0.01 of its potential returns per unit of risk. US Gold Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 671.00 in US Gold Corp on December 27, 2024 and sell it today you would earn a total of 324.00 from holding US Gold Corp or generate 48.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Galiano Gold vs. US Gold Corp
Performance |
Timeline |
Galiano Gold |
US Gold Corp |
Galiano Gold and US Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Galiano Gold and US Gold
The main advantage of trading using opposite Galiano Gold and US Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, US 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 US Gold will offset losses from the drop in US Gold's long position.Galiano Gold vs. Avino Silver Gold | Galiano Gold vs. Americas Silver Corp | Galiano Gold vs. Paramount Gold Nevada | Galiano Gold vs. Fury Gold Mines |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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