Correlation Between Moneta Gold and Antioquia Gold

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

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

Diversification Opportunities for Moneta Gold and Antioquia Gold

0.0

Correlation Coefficient

Moneta Gold  Antioquia Gold

Pay attention - limited upside

The 3 months correlation between Moneta and Antioquia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Gold and Antioquia Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antioquia Gold and Moneta 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 Moneta Gold are associated (or correlated) with Antioquia Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antioquia Gold has no effect on the direction of Moneta Gold i.e., Moneta Gold and Antioquia Gold go up and down completely randomly.

Pair Corralation between Moneta Gold and Antioquia Gold

If you would invest  0.70  in Antioquia Gold on December 30, 2024 and sell it today you would earn a total of  0.80  from holding Antioquia Gold or generate 114.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Moneta Gold  vs.  Antioquia Gold

Moneta Gold

Risk-Adjusted Performance

Very Weak

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

Antioquia Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Antioquia Gold are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Antioquia Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moneta Gold and Antioquia Gold

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

The idea behind Moneta Gold and Antioquia Gold 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.