Correlation Between Alamos Gold and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Alamos Gold and NYSE Composite 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 Alamos Gold and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alamos Gold and NYSE Composite, you can compare the effects of market volatilities on Alamos Gold and NYSE Composite 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 Alamos Gold with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alamos Gold and NYSE Composite.
Diversification Opportunities for Alamos Gold and NYSE Composite
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alamos and NYSE is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Alamos Gold and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Alamos 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 Alamos Gold are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Alamos Gold i.e., Alamos Gold and NYSE Composite go up and down completely randomly.
Pair Corralation between Alamos Gold and NYSE Composite
Considering the 90-day investment horizon Alamos Gold is expected to generate 2.69 times more return on investment than NYSE Composite. However, Alamos Gold is 2.69 times more volatile than NYSE Composite. It trades about 0.06 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.14 per unit of risk. If you would invest 1,463 in Alamos Gold on February 2, 2024 and sell it today you would earn a total of 33.00 from holding Alamos Gold or generate 2.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Alamos Gold vs. NYSE Composite
Performance |
Timeline |
Alamos Gold and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Alamos Gold
Pair trading matchups for Alamos Gold
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Alamos Gold and NYSE Composite
The main advantage of trading using opposite Alamos Gold and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alamos Gold position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Alamos Gold vs. China Hongqiao Group | Alamos Gold vs. Alumina Limited PK | Alamos Gold vs. Norsk Hydro ASA |
NYSE Composite vs. Amkor Technology | NYSE Composite vs. MACOM Technology Solutions | NYSE Composite vs. Weibo Corp | NYSE Composite vs. NETGEAR |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |