Correlation Between Continental Gold and Dundee Precious
Can any of the company-specific risk be diversified away by investing in both Continental Gold and Dundee Precious 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 Continental Gold and Dundee Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Continental Gold and Dundee Precious Metals, you can compare the effects of market volatilities on Continental Gold and Dundee Precious 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 Continental Gold with a short position of Dundee Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Continental Gold and Dundee Precious.
Diversification Opportunities for Continental Gold and Dundee Precious
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Continental and Dundee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Continental Gold and Dundee Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dundee Precious Metals and Continental 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 Continental Gold are associated (or correlated) with Dundee Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dundee Precious Metals has no effect on the direction of Continental Gold i.e., Continental Gold and Dundee Precious go up and down completely randomly.
Pair Corralation between Continental Gold and Dundee Precious
If you would invest 655.00 in Dundee Precious Metals on January 25, 2024 and sell it today you would earn a total of 119.00 from holding Dundee Precious Metals or generate 18.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Continental Gold vs. Dundee Precious Metals
Performance |
Timeline |
Continental Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dundee Precious Metals |
Continental Gold and Dundee Precious Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Continental Gold and Dundee Precious
The main advantage of trading using opposite Continental Gold and Dundee Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Continental Gold position performs unexpectedly, Dundee Precious 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 Dundee Precious will offset losses from the drop in Dundee Precious' long position.Continental Gold vs. Carters | Continental Gold vs. Levi Strauss Co | Continental Gold vs. MYT Netherlands Parent | Continental Gold vs. Getty Realty |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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