Correlation Between Aris Gold and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Aris Gold and GoGold Resources 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 Aris Gold and GoGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aris Gold and GoGold Resources, you can compare the effects of market volatilities on Aris Gold and GoGold Resources 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 Aris Gold with a short position of GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aris Gold and GoGold Resources.
Diversification Opportunities for Aris Gold and GoGold Resources
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aris and GoGold is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aris Gold and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Aris 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 Aris Gold are associated (or correlated) with GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Aris Gold i.e., Aris Gold and GoGold Resources go up and down completely randomly.
Pair Corralation between Aris Gold and GoGold Resources
Assuming the 90 days horizon Aris Gold is expected to generate 1.34 times more return on investment than GoGold Resources. However, Aris Gold is 1.34 times more volatile than GoGold Resources. It trades about 0.18 of its potential returns per unit of risk. GoGold Resources is currently generating about 0.11 per unit of risk. If you would invest 31.00 in Aris Gold on August 14, 2025 and sell it today you would earn a total of 22.00 from holding Aris Gold or generate 70.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aris Gold vs. GoGold Resources
Performance |
| Timeline |
| Aris Gold |
| GoGold Resources |
Aris Gold and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aris Gold and GoGold Resources
The main advantage of trading using opposite Aris Gold and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aris Gold position performs unexpectedly, GoGold Resources 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 GoGold Resources will offset losses from the drop in GoGold Resources' long position.| Aris Gold vs. Eloro Resources | Aris Gold vs. Orosur Mining | Aris Gold vs. Soma Gold Corp | Aris Gold vs. Minaurum Gold |
| GoGold Resources vs. Avino Silver Gold | GoGold Resources vs. Metalla Royalty Streaming | GoGold Resources vs. Integra Resources Corp | GoGold Resources vs. AbraSilver Resource Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |