Correlation Between Yamana Gold and Gold Reserve
Can any of the company-specific risk be diversified away by investing in both Yamana Gold and Gold Reserve 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 Gold Reserve into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamana Gold and Gold Reserve, you can compare the effects of market volatilities on Yamana Gold and Gold Reserve 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 Gold Reserve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamana Gold and Gold Reserve.
Diversification Opportunities for Yamana Gold and Gold Reserve
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yamana and Gold is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Yamana Gold and Gold Reserve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Reserve 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 Gold Reserve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Reserve has no effect on the direction of Yamana Gold i.e., Yamana Gold and Gold Reserve go up and down completely randomly.
Pair Corralation between Yamana Gold and Gold Reserve
If you would invest 585.00 in Yamana Gold on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Yamana Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Yamana Gold vs. Gold Reserve
Performance |
| Timeline |
| Yamana Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gold Reserve |
Yamana Gold and Gold Reserve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yamana Gold and Gold Reserve
The main advantage of trading using opposite Yamana Gold and Gold Reserve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamana Gold position performs unexpectedly, Gold Reserve 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 Gold Reserve will offset losses from the drop in Gold Reserve'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 |
| Gold Reserve vs. Alumina Limited | Gold Reserve vs. HUMANA INC | Gold Reserve vs. Aquagold International | Gold Reserve vs. Spring Valley Acquisition |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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