Correlation Analysis Between Royal Gold and All Ords

This module allows you to analyze existing cross correlation between Royal Gold and All Ords. You can compare the effects of market volatilities on Royal Gold and All Ords 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 Royal Gold with a short position of All Ords. See also your portfolio center. Please also check ongoing floating volatility patterns of Royal Gold and All Ords.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

Royal Gold Inc  vs.  All Ords

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Royal Gold is expected to generate 1.69 times more return on investment than All Ords. However, Royal Gold is 1.69 times more volatile than All Ords. It trades about 0.35 of its potential returns per unit of risk. All Ords is currently generating about -0.04 per unit of risk. If you would invest  10,126  in Royal Gold on July 25, 2019 and sell it today you would earn a total of  2,809  from holding Royal Gold or generate 27.74% return on investment over 30 days.

Pair Corralation between Royal Gold and All Ords

-0.19
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy81.82%
ValuesDaily Returns

Diversification Opportunities for Royal Gold and All Ords

Royal Gold Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Royal Gold Inc and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords and Royal 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 Royal Gold are associated (or correlated) with All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of Royal Gold i.e. Royal Gold and All Ords go up and down completely randomly.
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See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.


 
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