Correlation Between G2 Goldfields and Brompton European

Can any of the company-specific risk be diversified away by investing in both G2 Goldfields and Brompton European 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 G2 Goldfields and Brompton European into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between G2 Goldfields and Brompton European Dividend, you can compare the effects of market volatilities on G2 Goldfields and Brompton European 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 G2 Goldfields with a short position of Brompton European. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2 Goldfields and Brompton European.

Diversification Opportunities for G2 Goldfields and Brompton European

-0.45

Correlation Coefficient

G2 Goldfields  Brompton European

Very good diversification

The 3 months correlation between GUYGF and Brompton is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding G2 Goldfields and Brompton European Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brompton European and G2 Goldfields 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 G2 Goldfields are associated (or correlated) with Brompton European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brompton European has no effect on the direction of G2 Goldfields i.e., G2 Goldfields and Brompton European go up and down completely randomly.

Pair Corralation between G2 Goldfields and Brompton European

Assuming the 90 days horizon G2 Goldfields is expected to generate 2.69 times more return on investment than Brompton European. However, G2 Goldfields is 2.69 times more volatile than Brompton European Dividend. It trades about 0.09 of its potential returns per unit of risk. Brompton European Dividend is currently generating about 0.05 per unit of risk. If you would invest  100.00  in G2 Goldfields on May 6, 2025 and sell it today you would earn a total of  100.00  from holding G2 Goldfields or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.19%
Values	Daily Returns

G2 Goldfields  vs.  Brompton European Dividend

G2 Goldfields

Risk-Adjusted Performance

Very Weak

Over the last 90 days G2 Goldfields has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Brompton European

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Brompton European Dividend are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Brompton European is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with G2 Goldfields and Brompton European

The main advantage of trading using opposite G2 Goldfields and Brompton European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2 Goldfields position performs unexpectedly, Brompton European 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 Brompton European will offset losses from the drop in Brompton European's long position.

The idea behind G2 Goldfields and Brompton European Dividend 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.