Correlation Between Independence Gold and Mundoro Capital
Can any of the company-specific risk be diversified away by investing in both Independence Gold and Mundoro Capital 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 Independence Gold and Mundoro Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Independence Gold Corp and Mundoro Capital, you can compare the effects of market volatilities on Independence Gold and Mundoro Capital 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 Independence Gold with a short position of Mundoro Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and Mundoro Capital.
Diversification Opportunities for Independence Gold and Mundoro Capital
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Independence and Mundoro is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Independence Gold Corp and Mundoro Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mundoro Capital and Independence 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 Independence Gold Corp are associated (or correlated) with Mundoro Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mundoro Capital has no effect on the direction of Independence Gold i.e., Independence Gold and Mundoro Capital go up and down completely randomly.
Pair Corralation between Independence Gold and Mundoro Capital
Assuming the 90 days horizon Independence Gold Corp is expected to generate 2.57 times more return on investment than Mundoro Capital. However, Independence Gold is 2.57 times more volatile than Mundoro Capital. It trades about 0.02 of its potential returns per unit of risk. Mundoro Capital is currently generating about -0.04 per unit of risk. If you would invest 21.00 in Independence Gold Corp on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Independence Gold Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Independence Gold Corp vs. Mundoro Capital
Performance |
Timeline |
Independence Gold Corp |
Mundoro Capital |
Independence Gold and Mundoro Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Independence Gold and Mundoro Capital
The main advantage of trading using opposite Independence Gold and Mundoro Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold position performs unexpectedly, Mundoro Capital 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 Mundoro Capital will offset losses from the drop in Mundoro Capital's long position.Independence Gold vs. Kesselrun Resources | Independence Gold vs. Altiplano Metals | Independence Gold vs. Rockhaven Resources | Independence Gold vs. Magnum Goldcorp |
Mundoro Capital vs. TGS Esports | Mundoro Capital vs. 2028 Investment Grade | Mundoro Capital vs. Maple Peak Investments | Mundoro Capital vs. CNJ Capital Investments |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |