Correlation Between Alamos Gold and AdvanSix
Can any of the company-specific risk be diversified away by investing in both Alamos Gold and AdvanSix 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 AdvanSix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alamos Gold and AdvanSix, you can compare the effects of market volatilities on Alamos Gold and AdvanSix 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 AdvanSix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alamos Gold and AdvanSix.
Diversification Opportunities for Alamos Gold and AdvanSix
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alamos and AdvanSix is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Alamos Gold and AdvanSix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvanSix 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 AdvanSix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvanSix has no effect on the direction of Alamos Gold i.e., Alamos Gold and AdvanSix go up and down completely randomly.
Pair Corralation between Alamos Gold and AdvanSix
Considering the 90-day investment horizon Alamos Gold is expected to generate 1.57 times less return on investment than AdvanSix. In addition to that, Alamos Gold is 1.14 times more volatile than AdvanSix. It trades about 0.03 of its total potential returns per unit of risk. AdvanSix is currently generating about 0.06 per unit of volatility. If you would invest 2,305 in AdvanSix on March 24, 2025 and sell it today you would earn a total of 37.00 from holding AdvanSix or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alamos Gold vs. AdvanSix
Performance |
| Timeline |
| Alamos Gold |
| AdvanSix |
Alamos Gold and AdvanSix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alamos Gold and AdvanSix
The main advantage of trading using opposite Alamos Gold and AdvanSix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alamos Gold position performs unexpectedly, AdvanSix 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 AdvanSix will offset losses from the drop in AdvanSix's long position.| Alamos Gold vs. Pan American Silver | Alamos Gold vs. Newmont Goldcorp Corp | Alamos Gold vs. Wheaton Precious Metals | Alamos Gold vs. Franco Nevada |
| AdvanSix vs. Methanex | AdvanSix vs. Lsb Industries | AdvanSix vs. Green Plains Renewable | AdvanSix vs. Tronox Holdings PLC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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