Correlation Between DY6 Metals and Centerra Gold
Can any of the company-specific risk be diversified away by investing in both DY6 Metals and Centerra 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 DY6 Metals and Centerra Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DY6 Metals and Centerra Gold, you can compare the effects of market volatilities on DY6 Metals and Centerra 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 DY6 Metals with a short position of Centerra Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of DY6 Metals and Centerra Gold.
Diversification Opportunities for DY6 Metals and Centerra Gold
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DY6 and Centerra is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding DY6 Metals and Centerra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centerra Gold and DY6 Metals 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 DY6 Metals are associated (or correlated) with Centerra Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centerra Gold has no effect on the direction of DY6 Metals i.e., DY6 Metals and Centerra Gold go up and down completely randomly.
Pair Corralation between DY6 Metals and Centerra Gold
Assuming the 90 days trading horizon DY6 Metals is expected to under-perform the Centerra Gold. In addition to that, DY6 Metals is 2.52 times more volatile than Centerra Gold. It trades about -0.18 of its total potential returns per unit of risk. Centerra Gold is currently generating about -0.01 per unit of volatility. If you would invest 1,208 in Centerra Gold on August 20, 2025 and sell it today you would lose (27.00) from holding Centerra Gold or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DY6 Metals vs. Centerra Gold
Performance |
| Timeline |
| DY6 Metals |
| Centerra Gold |
DY6 Metals and Centerra Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DY6 Metals and Centerra Gold
The main advantage of trading using opposite DY6 Metals and Centerra Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DY6 Metals position performs unexpectedly, Centerra 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 Centerra Gold will offset losses from the drop in Centerra Gold's long position.| DY6 Metals vs. Northern Star Resources | DY6 Metals vs. Evolution Mining | DY6 Metals vs. Alcoa | DY6 Metals vs. Bluescope Steel |
| Centerra Gold vs. Seabridge Gold | Centerra Gold vs. DRDGOLD Limited ADR | Centerra Gold vs. Boise Cascad Llc | Centerra Gold vs. Fortuna Silver Mines |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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