Correlation Between Pan American and Goldbank Mining

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

By analyzing existing cross correlation between Pan American Silver and Goldbank Mining Corp, you can compare the effects of market volatilities on Pan American and Goldbank Mining 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 Pan American with a short position of Goldbank Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan American and Goldbank Mining.

Diversification Opportunities for Pan American and Goldbank Mining

-0.29

Correlation Coefficient

Pan American  Goldbank Mining

Very good diversification

The 3 months correlation between Pan and Goldbank is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pan American Silver and Goldbank Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldbank Mining Corp and Pan American 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 Pan American Silver are associated (or correlated) with Goldbank Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldbank Mining Corp has no effect on the direction of Pan American i.e., Pan American and Goldbank Mining go up and down completely randomly.

Pair Corralation between Pan American and Goldbank Mining

If you would invest  18.00  in Goldbank Mining Corp on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Goldbank Mining Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Pan American Silver  vs.  Goldbank Mining Corp

Pan American Silver

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pan American Silver are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Pan American is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Goldbank Mining Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Goldbank Mining Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Goldbank Mining may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Pan American and Goldbank Mining

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

The idea behind Pan American Silver and Goldbank Mining Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..