Correlation Between White Gold and Sixty North

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

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

Diversification Opportunities for White Gold and Sixty North

0.2

Correlation Coefficient

White Gold  Sixty North

Modest diversification

The 12 months correlation between White and Sixty is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding White Gold Corp and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North Gold and White Gold 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 White Gold Corp are associated (or correlated) with Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of White Gold i.e., White Gold and Sixty North go up and down completely randomly.

Pair Corralation between White Gold and Sixty North

If you would invest  23.00  in White Gold Corp on March 18, 2024 and sell it today you would earn a total of  3.00  from holding White Gold Corp or generate 13.04% return on investment over 90 days.

Time Period	12 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	2.78%
Values	Daily Returns

White Gold Corp  vs.  Sixty North Gold

White Gold Corp

Risk-Adjusted Performance

2 of 100

Weak

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

Sixty North Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sixty North Gold 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 basic indicators remain nearly stable which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with White Gold and Sixty North

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

The idea behind White Gold Corp and Sixty North Gold 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.