Correlation Between Decade Resources and Joshua Gold

Can any of the company-specific risk be diversified away by investing in both Decade Resources and Joshua 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 Decade Resources and Joshua Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Decade Resources and Joshua Gold Resources, you can compare the effects of market volatilities on Decade Resources and Joshua 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 Decade Resources with a short position of Joshua Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Decade Resources and Joshua Gold.

Diversification Opportunities for Decade Resources and Joshua Gold

0.8

Correlation Coefficient

Decade Resources  Joshua Gold

Very poor diversification

The 3 months correlation between Decade and Joshua is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Decade Resources and Joshua Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joshua Gold Resources and Decade Resources 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 Decade Resources are associated (or correlated) with Joshua Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joshua Gold Resources has no effect on the direction of Decade Resources i.e., Decade Resources and Joshua Gold go up and down completely randomly.

Pair Corralation between Decade Resources and Joshua Gold

Assuming the 90 days horizon Decade Resources is expected to generate 1.02 times less return on investment than Joshua Gold. But when comparing it to its historical volatility, Decade Resources is 1.86 times less risky than Joshua Gold. It trades about 0.05 of its potential returns per unit of risk. Joshua Gold Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  0.65  in Joshua Gold Resources on May 5, 2025 and sell it today you would lose (0.33) from holding Joshua Gold Resources or give up 50.77% of portfolio value over 90 days.

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

Decade Resources  vs.  Joshua Gold Resources

Decade Resources

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Decade Resources are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Decade Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Joshua Gold Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Joshua Gold Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Joshua Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Decade Resources and Joshua Gold

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

The idea behind Decade Resources and Joshua 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.