Correlation Between GOLDGROUP MINING and La Franaise

Can any of the company-specific risk be diversified away by investing in both GOLDGROUP MINING and La Franaise 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 GOLDGROUP MINING and La Franaise into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GOLDGROUP MINING INC and La Franaise des, you can compare the effects of market volatilities on GOLDGROUP MINING and La Franaise 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 GOLDGROUP MINING with a short position of La Franaise. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDGROUP MINING and La Franaise.

Diversification Opportunities for GOLDGROUP MINING and La Franaise

-0.65

Correlation Coefficient

GOLDGROUP MINING  La Franaise

Excellent diversification

The 3 months correlation between GOLDGROUP and 1WE is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding GOLDGROUP MINING INC and La Franaise des in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Franaise des and GOLDGROUP MINING 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 GOLDGROUP MINING INC are associated (or correlated) with La Franaise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Franaise des has no effect on the direction of GOLDGROUP MINING i.e., GOLDGROUP MINING and La Franaise go up and down completely randomly.

Pair Corralation between GOLDGROUP MINING and La Franaise

Assuming the 90 days trading horizon GOLDGROUP MINING INC is expected to generate 2.65 times more return on investment than La Franaise. However, GOLDGROUP MINING is 2.65 times more volatile than La Franaise des. It trades about -0.01 of its potential returns per unit of risk. La Franaise des is currently generating about -0.06 per unit of risk. If you would invest  68.00  in GOLDGROUP MINING INC on May 5, 2025 and sell it today you would lose (5.00) from holding GOLDGROUP MINING INC or give up 7.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

GOLDGROUP MINING INC  vs.  La Franaise des

GOLDGROUP MINING INC

Risk-Adjusted Performance

Very Weak

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

La Franaise des

Risk-Adjusted Performance

Very Weak

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

Pair Trading with GOLDGROUP MINING and La Franaise

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

The idea behind GOLDGROUP MINING INC and La Franaise des 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.