Correlation Between Reunion Gold and Equinox Gold
Can any of the company-specific risk be diversified away by investing in both Reunion Gold and Equinox 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 Reunion Gold and Equinox Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reunion Gold and Equinox Gold Corp, you can compare the effects of market volatilities on Reunion Gold and Equinox 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 Reunion Gold with a short position of Equinox Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reunion Gold and Equinox Gold.
Diversification Opportunities for Reunion Gold and Equinox Gold
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Reunion and Equinox is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Reunion Gold and Equinox Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinox Gold Corp and Reunion 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 Reunion Gold are associated (or correlated) with Equinox Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinox Gold Corp has no effect on the direction of Reunion Gold i.e., Reunion Gold and Equinox Gold go up and down completely randomly.
Pair Corralation between Reunion Gold and Equinox Gold
Assuming the 90 days horizon Reunion Gold is expected to generate 1.24 times more return on investment than Equinox Gold. However, Reunion Gold is 1.24 times more volatile than Equinox Gold Corp. It trades about 0.22 of its potential returns per unit of risk. Equinox Gold Corp is currently generating about 0.12 per unit of risk. If you would invest 37.00 in Reunion Gold on January 26, 2024 and sell it today you would earn a total of 24.00 from holding Reunion Gold or generate 64.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Reunion Gold vs. Equinox Gold Corp
Performance |
Timeline |
Reunion Gold |
Equinox Gold Corp |
Reunion Gold and Equinox Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Reunion Gold and Equinox Gold
The main advantage of trading using opposite Reunion Gold and Equinox Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reunion Gold position performs unexpectedly, Equinox 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 Equinox Gold will offset losses from the drop in Equinox Gold's long position.Reunion Gold vs. Ressources Minieres Radisson | Reunion Gold vs. Highland Copper | Reunion Gold vs. Res Robex | Reunion Gold vs. Endurance Gold Corp |
Equinox Gold vs. Sandstorm Gold Ltd | Equinox Gold vs. Pan American Silver | Equinox Gold vs. SSR Mining | Equinox Gold vs. SilverCrest Metals |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |