Correlation Between 79North and Advance Gold

Can any of the company-specific risk be diversified away by investing in both 79North and Advance 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 79North and Advance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 79North and Advance Gold Corp, you can compare the effects of market volatilities on 79North and Advance 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 79North with a short position of Advance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of 79North and Advance Gold.

Diversification Opportunities for 79North and Advance Gold

0.0

Correlation Coefficient

79North  Advance Gold

Pay attention - limited upside

The 3 months correlation between 79North and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 79North and Advance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Gold Corp and 79North 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 79North are associated (or correlated) with Advance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Gold Corp has no effect on the direction of 79North i.e., 79North and Advance Gold go up and down completely randomly.

Pair Corralation between 79North and Advance Gold

If you would invest  2.21  in 79North on September 1, 2024 and sell it today you would earn a total of  0.65  from holding 79North or generate 29.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	53.13%
Values	Daily Returns

79North  vs.  Advance Gold Corp

79North

Risk-Adjusted Performance

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OK

Over the last 90 days 79North has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, 79North reported solid returns over the last few months and may actually be approaching a breakup point.

Advance Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with 79North and Advance Gold

The main advantage of trading using opposite 79North and Advance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 79North position performs unexpectedly, Advance 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 Advance Gold will offset losses from the drop in Advance Gold's long position.

The idea behind 79North and Advance 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.