Correlation Between Joshua Gold and Antilles Gold

Can any of the company-specific risk be diversified away by investing in both Joshua Gold and Antilles 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 Joshua Gold and Antilles Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Joshua Gold Resources and Antilles Gold Limited, you can compare the effects of market volatilities on Joshua Gold and Antilles 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 Joshua Gold with a short position of Antilles Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joshua Gold and Antilles Gold.

Diversification Opportunities for Joshua Gold and Antilles Gold

0.35

Correlation Coefficient

Joshua Gold  Antilles Gold

Weak diversification

The 3 months correlation between Joshua and Antilles is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Joshua Gold Resources and Antilles Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antilles Gold Limited and Joshua 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 Joshua Gold Resources are associated (or correlated) with Antilles Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antilles Gold Limited has no effect on the direction of Joshua Gold i.e., Joshua Gold and Antilles Gold go up and down completely randomly.

Pair Corralation between Joshua Gold and Antilles Gold

Given the investment horizon of 90 days Joshua Gold Resources is expected to under-perform the Antilles Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Joshua Gold Resources is 1.87 times less risky than Antilles Gold. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Antilles Gold Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1.00  in Antilles Gold Limited on September 15, 2024 and sell it today you would lose (0.70) from holding Antilles Gold Limited or give up 70.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Joshua Gold Resources  vs.  Antilles Gold Limited

Joshua Gold Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Joshua Gold Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Antilles Gold Limited

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Antilles Gold Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Antilles Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Joshua Gold and Antilles Gold

The main advantage of trading using opposite Joshua Gold and Antilles Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joshua Gold position performs unexpectedly, Antilles 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 Antilles Gold will offset losses from the drop in Antilles Gold's long position.

The idea behind Joshua Gold Resources and Antilles Gold Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.