Correlation Between China Gold and Silver Range
Can any of the company-specific risk be diversified away by investing in both China Gold and Silver Range 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 China Gold and Silver Range into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Gold International and Silver Range Resources, you can compare the effects of market volatilities on China Gold and Silver Range 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 China Gold with a short position of Silver Range. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Gold and Silver Range.
Diversification Opportunities for China Gold and Silver Range
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Silver is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Gold International and Silver Range Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Range Resources and China 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 China Gold International are associated (or correlated) with Silver Range. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Range Resources has no effect on the direction of China Gold i.e., China Gold and Silver Range go up and down completely randomly.
Pair Corralation between China Gold and Silver Range
If you would invest 652.00 in China Gold International on January 24, 2024 and sell it today you would earn a total of 178.00 from holding China Gold International or generate 27.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 0.0% |
Values | Daily Returns |
China Gold International vs. Silver Range Resources
Performance |
Timeline |
China Gold International |
Silver Range Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
China Gold and Silver Range Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Gold and Silver Range
The main advantage of trading using opposite China Gold and Silver Range positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Gold position performs unexpectedly, Silver Range 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 Silver Range will offset losses from the drop in Silver Range's long position.China Gold vs. Klondike Silver Corp | China Gold vs. Conquest Resources | China Gold vs. Abcourt Mines | China Gold vs. Colibri Resource 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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