Correlation Between Canadian Real and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Canadian Real and Alamos 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 Canadian Real and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Real Estate and Alamos Gold, you can compare the effects of market volatilities on Canadian Real and Alamos 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 Canadian Real with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Real and Alamos Gold.
Diversification Opportunities for Canadian Real and Alamos Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and Alamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Real Estate and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and Canadian Real 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 Canadian Real Estate are associated (or correlated) with Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of Canadian Real i.e., Canadian Real and Alamos Gold go up and down completely randomly.
Pair Corralation between Canadian Real and Alamos Gold
If you would invest (100.00) in Alamos Gold on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Alamos Gold or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Real Estate vs. Alamos Gold
Performance |
| Timeline |
| Canadian Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alamos Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Canadian Real and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Real and Alamos Gold
The main advantage of trading using opposite Canadian Real and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Real position performs unexpectedly, Alamos 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.| Canadian Real vs. Merit Medical Systems | Canadian Real vs. Franklin Wireless Corp | Canadian Real vs. Weyco Group | Canadian Real vs. Microbot Medical |
| Alamos Gold vs. Transphorm Technology | Alamos Gold vs. Fomento Economico Mexicano | Alamos Gold vs. Teradyne | Alamos Gold vs. Cirrus Logic |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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