Correlation Between GoldMining and Cabo Drilling
Can any of the company-specific risk be diversified away by investing in both GoldMining and Cabo Drilling 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 GoldMining and Cabo Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Cabo Drilling Corp, you can compare the effects of market volatilities on GoldMining and Cabo Drilling 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 GoldMining with a short position of Cabo Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Cabo Drilling.
Diversification Opportunities for GoldMining and Cabo Drilling
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GoldMining and Cabo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and Cabo Drilling Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabo Drilling Corp and GoldMining 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 GoldMining are associated (or correlated) with Cabo Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabo Drilling Corp has no effect on the direction of GoldMining i.e., GoldMining and Cabo Drilling go up and down completely randomly.
Pair Corralation between GoldMining and Cabo Drilling
If you would invest 78.00 in GoldMining on June 7, 2025 and sell it today you would earn a total of 28.00 from holding GoldMining or generate 35.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
GoldMining vs. Cabo Drilling Corp
Performance |
| Timeline |
| GoldMining |
| Cabo Drilling Corp |
GoldMining and Cabo Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Cabo Drilling
The main advantage of trading using opposite GoldMining and Cabo Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining position performs unexpectedly, Cabo Drilling 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 Cabo Drilling will offset losses from the drop in Cabo Drilling's long position.| GoldMining vs. Fortuna Silver Mines | GoldMining vs. Osisko Gold Ro | GoldMining vs. Equinox Gold Corp | GoldMining vs. K92 Mining |
| Cabo Drilling vs. CMS Energy | Cabo Drilling vs. AMCON Distributing | Cabo Drilling vs. Atmos Energy | Cabo Drilling vs. The Andersons |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |