Correlation Between Ballantyne Strong and US GoldMining

Can any of the company-specific risk be diversified away by investing in both Ballantyne Strong and US GoldMining 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 Ballantyne Strong and US GoldMining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ballantyne Strong and US GoldMining Common, you can compare the effects of market volatilities on Ballantyne Strong and US GoldMining 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 Ballantyne Strong with a short position of US GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballantyne Strong and US GoldMining.

Diversification Opportunities for Ballantyne Strong and US GoldMining

-0.02

Correlation Coefficient

Ballantyne Strong  US GoldMining

Good diversification

The 3 months correlation between Ballantyne and USGO is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ballantyne Strong and US GoldMining Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US GoldMining Common and Ballantyne Strong 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 Ballantyne Strong are associated (or correlated) with US GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US GoldMining Common has no effect on the direction of Ballantyne Strong i.e., Ballantyne Strong and US GoldMining go up and down completely randomly.

Pair Corralation between Ballantyne Strong and US GoldMining

If you would invest  265.00  in Ballantyne Strong on February 17, 2024 and sell it today you would earn a total of  0.00  from holding Ballantyne Strong or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.35%
Values	Daily Returns

Ballantyne Strong  vs.  US GoldMining Common

Ballantyne Strong

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ballantyne Strong has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ballantyne Strong is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

US GoldMining Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US GoldMining Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, US GoldMining is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Ballantyne Strong and US GoldMining

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

The idea behind Ballantyne Strong and US GoldMining Common 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.