Correlation Between Medallion Resources and Great Western

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

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

Diversification Opportunities for Medallion Resources and Great Western

0.0

Correlation Coefficient

Medallion Resources  Great Western

Pay attention - limited upside

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

Pair Corralation between Medallion Resources and Great Western

If you would invest  6.40  in Medallion Resources on September 3, 2024 and sell it today you would lose (1.40) from holding Medallion Resources or give up 21.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Medallion Resources  vs.  Great Western Minerals

Medallion Resources

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Medallion Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Medallion Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Great Western Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Medallion Resources and Great Western

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

The idea behind Medallion Resources and Great Western Minerals 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.

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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 Stocks Directory module to find actively traded stocks across global markets.