Correlation Between Elemental Royalties and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Elemental Royalties and Alamos 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 Elemental Royalties and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elemental Royalties Corp and Alamos Gold, you can compare the effects of market volatilities on Elemental Royalties and Alamos 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 Elemental Royalties with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elemental Royalties and Alamos Gold.
Diversification Opportunities for Elemental Royalties and Alamos Gold
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elemental and Alamos is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Elemental Royalties Corp and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and Elemental Royalties 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 Elemental Royalties Corp are associated (or correlated) with Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of Elemental Royalties i.e., Elemental Royalties and Alamos Gold go up and down completely randomly.
Pair Corralation between Elemental Royalties and Alamos Gold
Assuming the 90 days horizon Elemental Royalties is expected to generate 7.37 times less return on investment than Alamos Gold. In addition to that, Elemental Royalties is 1.14 times more volatile than Alamos Gold. It trades about 0.02 of its total potential returns per unit of risk. Alamos Gold is currently generating about 0.17 per unit of volatility. If you would invest 3,586 in Alamos Gold on August 15, 2025 and sell it today you would earn a total of 1,128 from holding Alamos Gold or generate 31.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elemental Royalties Corp vs. Alamos Gold
Performance |
| Timeline |
| Elemental Royalties Corp |
| Alamos Gold |
Elemental Royalties and Alamos Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elemental Royalties and Alamos Gold
The main advantage of trading using opposite Elemental Royalties and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elemental Royalties position performs unexpectedly, Alamos 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.| Elemental Royalties vs. Steppe Gold | Elemental Royalties vs. International Tower Hill | Elemental Royalties vs. Heliostar Metals | Elemental Royalties vs. Jaguar Mining |
| Alamos Gold vs. Pan American Silver | Alamos Gold vs. Lundin Gold | Alamos Gold vs. Ivanhoe Mines | Alamos Gold vs. Endeavour Mining 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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