Correlation Between Strikepoint Gold and China Gold
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and China 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 Strikepoint Gold and China Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strikepoint Gold and China Gold International, you can compare the effects of market volatilities on Strikepoint Gold and China 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 Strikepoint Gold with a short position of China Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and China Gold.
Diversification Opportunities for Strikepoint Gold and China Gold
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Strikepoint and China is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and China Gold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Gold International and Strikepoint 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 Strikepoint Gold are associated (or correlated) with China Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Gold International has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and China Gold go up and down completely randomly.
Pair Corralation between Strikepoint Gold and China Gold
Assuming the 90 days horizon Strikepoint Gold is expected to generate 3.53 times more return on investment than China Gold. However, Strikepoint Gold is 3.53 times more volatile than China Gold International. It trades about 0.03 of its potential returns per unit of risk. China Gold International is currently generating about -0.04 per unit of risk. If you would invest 30.00 in Strikepoint Gold on September 22, 2024 and sell it today you would lose (12.00) from holding Strikepoint Gold or give up 40.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.21% |
Values | Daily Returns |
Strikepoint Gold vs. China Gold International
Performance |
Timeline |
Strikepoint Gold |
China Gold International |
Strikepoint Gold and China Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strikepoint Gold and China Gold
The main advantage of trading using opposite Strikepoint Gold and China Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, China 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 China Gold will offset losses from the drop in China Gold's long position.Strikepoint Gold vs. Monarca Minerals | Strikepoint Gold vs. Outcrop Gold Corp | Strikepoint Gold vs. Grande Portage Resources | Strikepoint Gold vs. Klondike Silver Corp |
China Gold vs. Strikepoint Gold | China Gold vs. Eskay Mining Corp | China Gold vs. Stillwater Critical Minerals |
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
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Stocks Directory Find actively traded stocks across global markets | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |