Correlation Between Goldcorp and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Goldcorp 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 Goldcorp and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldcorp and Alamos Gold, you can compare the effects of market volatilities on Goldcorp 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 Goldcorp with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldcorp and Alamos Gold.
Diversification Opportunities for Goldcorp and Alamos Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldcorp and Alamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldcorp and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and Goldcorp 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 Goldcorp 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 Goldcorp i.e., Goldcorp and Alamos Gold go up and down completely randomly.
Pair Corralation between Goldcorp and Alamos Gold
If you would invest 1,216 in Alamos Gold on January 26, 2024 and sell it today you would earn a total of 304.00 from holding Alamos Gold or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Goldcorp vs. Alamos Gold
Performance |
| Timeline |
| Goldcorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alamos Gold |
Goldcorp and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldcorp and Alamos Gold
The main advantage of trading using opposite Goldcorp and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldcorp 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.| Goldcorp vs. GAMCO Global Gold | Goldcorp vs. RBC Bearings Incorporated | Goldcorp vs. ChampionX | Goldcorp vs. Highway Holdings Limited |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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