Correlation Between Benguet Corp and Allegiant Gold
Can any of the company-specific risk be diversified away by investing in both Benguet Corp and Allegiant 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 Benguet Corp and Allegiant Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benguet Corp B and Allegiant Gold, you can compare the effects of market volatilities on Benguet Corp and Allegiant 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 Benguet Corp with a short position of Allegiant Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benguet Corp and Allegiant Gold.
Diversification Opportunities for Benguet Corp and Allegiant Gold
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Benguet and Allegiant is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Benguet Corp B and Allegiant Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Gold and Benguet Corp 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 Benguet Corp B are associated (or correlated) with Allegiant Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Gold has no effect on the direction of Benguet Corp i.e., Benguet Corp and Allegiant Gold go up and down completely randomly.
Pair Corralation between Benguet Corp and Allegiant Gold
Assuming the 90 days horizon Benguet Corp B is expected to generate 2.39 times more return on investment than Allegiant Gold. However, Benguet Corp is 2.39 times more volatile than Allegiant Gold. It trades about 0.04 of its potential returns per unit of risk. Allegiant Gold is currently generating about 0.03 per unit of risk. If you would invest 7.50 in Benguet Corp B on August 29, 2025 and sell it today you would lose (1.00) from holding Benguet Corp B or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Benguet Corp B vs. Allegiant Gold
Performance |
| Timeline |
| Benguet Corp B |
| Allegiant Gold |
Benguet Corp and Allegiant Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benguet Corp and Allegiant Gold
The main advantage of trading using opposite Benguet Corp and Allegiant Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benguet Corp position performs unexpectedly, Allegiant 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 Allegiant Gold will offset losses from the drop in Allegiant Gold's long position.| Benguet Corp vs. Collins Foods Limited | Benguet Corp vs. CITIC Telecom International | Benguet Corp vs. Tyson Foods | Benguet Corp vs. Hutchison Telecommunications Hong |
| Allegiant Gold vs. Chesapeake Utilities | Allegiant Gold vs. American Transportation Holdings | Allegiant Gold vs. Iron Road Limited | Allegiant Gold vs. Yuexiu Transport Infrastructure |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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