Correlation Between MAS Gold and Stakeholder Gold
Can any of the company-specific risk be diversified away by investing in both MAS Gold and Stakeholder 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 MAS Gold and Stakeholder Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAS Gold Corp and Stakeholder Gold Corp, you can compare the effects of market volatilities on MAS Gold and Stakeholder 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 MAS Gold with a short position of Stakeholder Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Gold and Stakeholder Gold.
Diversification Opportunities for MAS Gold and Stakeholder Gold
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAS and Stakeholder is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MAS Gold Corp and Stakeholder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stakeholder Gold Corp and MAS 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 MAS Gold Corp are associated (or correlated) with Stakeholder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stakeholder Gold Corp has no effect on the direction of MAS Gold i.e., MAS Gold and Stakeholder Gold go up and down completely randomly.
Pair Corralation between MAS Gold and Stakeholder Gold
Assuming the 90 days horizon MAS Gold Corp is expected to generate 8.24 times more return on investment than Stakeholder Gold. However, MAS Gold is 8.24 times more volatile than Stakeholder Gold Corp. It trades about 0.15 of its potential returns per unit of risk. Stakeholder Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 1.00 in MAS Gold Corp on October 15, 2024 and sell it today you would earn a total of 0.00 from holding MAS Gold Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MAS Gold Corp vs. Stakeholder Gold Corp
Performance |
Timeline |
MAS Gold Corp |
Stakeholder Gold Corp |
MAS Gold and Stakeholder Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MAS Gold and Stakeholder Gold
The main advantage of trading using opposite MAS Gold and Stakeholder Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Gold position performs unexpectedly, Stakeholder 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 Stakeholder Gold will offset losses from the drop in Stakeholder Gold's long position.MAS Gold vs. Desert Gold Ventures | ||
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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