Correlation Between Marathon Gold and I 80

Can any of the company-specific risk be diversified away by investing in both Marathon Gold and I 80 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 Marathon Gold and I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marathon Gold and I 80 Gold Corp, you can compare the effects of market volatilities on Marathon Gold and I 80 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 Marathon Gold with a short position of I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Gold and I 80.

Diversification Opportunities for Marathon Gold and I 80

-0.34

Correlation Coefficient

Marathon Gold  I 80

Very good diversification

The 3 months correlation between Marathon and IAUX is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Gold and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 Gold and Marathon 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 Marathon Gold are associated (or correlated) with I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Marathon Gold i.e., Marathon Gold and I 80 go up and down completely randomly.

Pair Corralation between Marathon Gold and I 80

Assuming the 90 days horizon Marathon Gold is expected to generate 0.82 times more return on investment than I 80. However, Marathon Gold is 1.22 times less risky than I 80. It trades about 0.01 of its potential returns per unit of risk. I 80 Gold Corp is currently generating about -0.04 per unit of risk. If you would invest  68.00  in Marathon Gold on September 3, 2024 and sell it today you would lose (4.00) from holding Marathon Gold or give up 5.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	30.91%
Values	Daily Returns

Marathon Gold  vs.  I 80 Gold Corp

Marathon Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marathon Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Marathon Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

I 80 Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days I 80 Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Marathon Gold and I 80

The main advantage of trading using opposite Marathon Gold and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Gold position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.

The idea behind Marathon Gold and I 80 Gold Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.