Correlation Between Yamana Gold and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Yamana Gold 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 Yamana Gold and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamana Gold and Alamos Gold, you can compare the effects of market volatilities on Yamana Gold 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 Yamana Gold with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamana Gold and Alamos Gold.
Diversification Opportunities for Yamana Gold and Alamos Gold
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yamana and Alamos is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Yamana Gold and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and Yamana 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 Yamana Gold 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 Yamana Gold i.e., Yamana Gold and Alamos Gold go up and down completely randomly.
Pair Corralation between Yamana Gold and Alamos Gold
If you would invest 1,255 in Alamos Gold on January 24, 2024 and sell it today you would earn a total of 258.00 from holding Alamos Gold or generate 20.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.61% |
| Values | Daily Returns |
Yamana Gold vs. Alamos Gold
Performance |
| Timeline |
| Yamana Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alamos Gold |
Yamana Gold and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yamana Gold and Alamos Gold
The main advantage of trading using opposite Yamana Gold and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamana Gold 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.| Yamana Gold vs. Agnico Eagle Mines | Yamana Gold vs. Wheaton Precious Metals | Yamana Gold vs. Newmont Goldcorp Corp | Yamana Gold vs. Kinross Gold |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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