Correlation Between Ligand Pharmaceuticals and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Ligand Pharmaceuticals 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 Ligand Pharmaceuticals and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ligand Pharmaceuticals Tr and Alamos Gold, you can compare the effects of market volatilities on Ligand Pharmaceuticals 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 Ligand Pharmaceuticals with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligand Pharmaceuticals and Alamos Gold.
Diversification Opportunities for Ligand Pharmaceuticals and Alamos Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ligand and Alamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ligand Pharmaceuticals Tr and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and Ligand Pharmaceuticals 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 Ligand Pharmaceuticals Tr 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 Ligand Pharmaceuticals i.e., Ligand Pharmaceuticals and Alamos Gold go up and down completely randomly.
Pair Corralation between Ligand Pharmaceuticals and Alamos Gold
If you would invest (100.00) in Alamos Gold on January 20, 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 | 0.0% |
| Values | Daily Returns |
Ligand Pharmaceuticals Tr vs. Alamos Gold
Performance |
| Timeline |
| Ligand Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alamos Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ligand Pharmaceuticals and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligand Pharmaceuticals and Alamos Gold
The main advantage of trading using opposite Ligand Pharmaceuticals and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligand Pharmaceuticals 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.| Ligand Pharmaceuticals vs. Group Ten Metals | Ligand Pharmaceuticals vs. Ascendant Resources | Ligand Pharmaceuticals vs. Atico Mining | Ligand Pharmaceuticals vs. Prime Mining Corp |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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