Correlation Between Galiano Gold and Nine Mile
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Nine Mile 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 Nine Mile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galiano Gold and Nine Mile Metals, you can compare the effects of market volatilities on Galiano Gold and Nine Mile 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 Nine Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Nine Mile.
Diversification Opportunities for Galiano Gold and Nine Mile
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galiano and Nine is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile Metals 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 Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of Galiano Gold i.e., Galiano Gold and Nine Mile go up and down completely randomly.
Pair Corralation between Galiano Gold and Nine Mile
Considering the 90-day investment horizon Galiano Gold is expected to generate 0.27 times more return on investment than Nine Mile. However, Galiano Gold is 3.66 times less risky than Nine Mile. It trades about -0.1 of its potential returns per unit of risk. Nine Mile Metals is currently generating about -0.05 per unit of risk. If you would invest 140.00 in Galiano Gold on December 3, 2024 and sell it today you would lose (26.00) from holding Galiano Gold or give up 18.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.31% |
Values | Daily Returns |
Galiano Gold vs. Nine Mile Metals
Performance |
Timeline |
Galiano Gold |
Nine Mile Metals |
Galiano Gold and Nine Mile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Galiano Gold and Nine Mile
The main advantage of trading using opposite Galiano Gold and Nine Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Nine Mile 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 Nine Mile will offset losses from the drop in Nine Mile'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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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