Correlation Between GoGold Resources and Compass Minerals
Can any of the company-specific risk be diversified away by investing in both GoGold Resources and Compass Minerals 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 GoGold Resources and Compass Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoGold Resources and Compass Minerals International, you can compare the effects of market volatilities on GoGold Resources and Compass Minerals 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 GoGold Resources with a short position of Compass Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoGold Resources and Compass Minerals.
Diversification Opportunities for GoGold Resources and Compass Minerals
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GoGold and Compass is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding GoGold Resources and Compass Minerals International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compass Minerals Int and GoGold Resources 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 GoGold Resources are associated (or correlated) with Compass Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compass Minerals Int has no effect on the direction of GoGold Resources i.e., GoGold Resources and Compass Minerals go up and down completely randomly.
Pair Corralation between GoGold Resources and Compass Minerals
Assuming the 90 days trading horizon GoGold Resources is expected to generate 1.23 times more return on investment than Compass Minerals. However, GoGold Resources is 1.23 times more volatile than Compass Minerals International. It trades about 0.08 of its potential returns per unit of risk. Compass Minerals International is currently generating about -0.11 per unit of risk. If you would invest 228.00 in GoGold Resources on July 15, 2025 and sell it today you would earn a total of 31.00 from holding GoGold Resources or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
GoGold Resources vs. Compass Minerals International
Performance |
| Timeline |
| GoGold Resources |
| Compass Minerals Int |
GoGold Resources and Compass Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoGold Resources and Compass Minerals
The main advantage of trading using opposite GoGold Resources and Compass Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoGold Resources position performs unexpectedly, Compass Minerals 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 Compass Minerals will offset losses from the drop in Compass Minerals' long position.| GoGold Resources vs. Defiance Silver Corp | GoGold Resources vs. Liberty Gold Corp | GoGold Resources vs. Dolly Varden Silver | GoGold Resources vs. Minaurum Gold |
| Compass Minerals vs. Cabot | Compass Minerals vs. CF Industries Holdings | Compass Minerals vs. Intrepid Potash | Compass Minerals vs. Largo Resources |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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