Correlation Between Pace Metals and Q Gold

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Pace Metals and Q 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 Pace Metals and Q Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace Metals and Q Gold Resources, you can compare the effects of market volatilities on Pace Metals and Q 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 Pace Metals with a short position of Q Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Metals and Q Gold.

Diversification Opportunities for Pace Metals and Q Gold

PaceQGRDiversified AwayPaceQGRDiversified Away100%
0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between Pace and QGR is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Pace Metals and Q Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q Gold Resources and Pace Metals 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 Pace Metals are associated (or correlated) with Q Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q Gold Resources has no effect on the direction of Pace Metals i.e., Pace Metals and Q Gold go up and down completely randomly.

Pair Corralation between Pace Metals and Q Gold

Assuming the 90 days trading horizon Pace Metals is expected to generate 0.18 times more return on investment than Q Gold. However, Pace Metals is 5.67 times less risky than Q Gold. It trades about -0.13 of its potential returns per unit of risk. Q Gold Resources is currently generating about -0.06 per unit of risk. If you would invest  18.00  in Pace Metals on October 25, 2024 and sell it today you would lose (2.00) from holding Pace Metals or give up 11.11% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Pace Metals  vs.  Q Gold Resources

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -30-20-10010203040
JavaScript chart by amCharts 3.21.15PACE QGR
       Timeline  
Pace Metals 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Pace Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.160.1650.170.1750.18
Q Gold Resources 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Q Gold Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.080.10.120.140.160.18

Pace Metals and Q Gold Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.71-3.53-2.34-1.160.01821.082.173.264.36 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15PACE QGR
       Returns  

Pair Trading with Pace Metals and Q Gold

The main advantage of trading using opposite Pace Metals and Q Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Metals position performs unexpectedly, Q 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 Q Gold will offset losses from the drop in Q Gold's long position.
The idea behind Pace Metals and Q Gold Resources 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum