Two Equities Correlation Analysis
Specify exactly 2 symbols:
GDRZF
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Gold Reserve and NYSE Composite
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gold and NYSE is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gold Reserve and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Gold Reserve 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 Gold Reserve are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Gold Reserve i.e., Gold Reserve and NYSE Composite go up and down completely randomly.
Pair Corralation between Gold Reserve and NYSE Composite
Assuming the 90 days horizon Gold Reserve is expected to generate 2.26 times more return on investment than NYSE Composite. However, Gold Reserve is 2.26 times more volatile than NYSE Composite. It trades about -0.04 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.31 per unit of risk. If you would invest 297.00 in Gold Reserve on January 20, 2024 and sell it today you would lose (4.00) from holding Gold Reserve or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Reserve vs. NYSE Composite
Performance |
| Timeline |
Gold Reserve and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Gold Reserve
Pair trading matchups for Gold Reserve
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Gold Reserve and NYSE Composite
The main advantage of trading using opposite Gold Reserve and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Reserve position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Gold Reserve vs. Alumina Limited | Gold Reserve vs. HUMANA INC | Gold Reserve vs. Aquagold International | Gold Reserve vs. Spring Valley Acquisition |
| NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Shake Shack |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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