Correlation Between Marathon Gold and Minera Alamos

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

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

Diversification Opportunities for Marathon Gold and Minera Alamos

0.0

Correlation Coefficient

Marathon Gold  Minera Alamos

Pay attention - limited upside

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

Pair Corralation between Marathon Gold and Minera Alamos

If you would invest  18.00  in Minera Alamos on December 20, 2024 and sell it today you would earn a total of  7.00  from holding Minera Alamos or generate 38.89% return on investment over 90 days.

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

Marathon Gold  vs.  Minera Alamos

Marathon Gold

Risk-Adjusted Performance

Very Weak

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

Minera Alamos

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Minera Alamos are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Minera Alamos reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marathon Gold and Minera Alamos

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

The idea behind Marathon Gold and Minera Alamos 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.