Correlation Between 79North and Argo Gold

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

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

Diversification Opportunities for 79North and Argo Gold

-0.51

Correlation Coefficient

79North  Argo Gold

Excellent diversification

The 3 months correlation between 79North and Argo is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding 79North and Argo Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Gold 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 Argo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Gold has no effect on the direction of 79North i.e., 79North and Argo Gold go up and down completely randomly.

Pair Corralation between 79North and Argo Gold

If you would invest  6.00  in Argo Gold on September 3, 2024 and sell it today you would lose (0.50) from holding Argo Gold or give up 8.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

79North  vs.  Argo Gold

79North

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 79North has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, 79North is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Argo Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Argo Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Argo 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 Argo Gold

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

The idea behind 79North and Argo Gold 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.