Correlation Between IAMGold and China Gold
Can any of the company-specific risk be diversified away by investing in both IAMGold and China 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 IAMGold and China Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IAMGold and China Gold International, you can compare the effects of market volatilities on IAMGold and China 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 IAMGold with a short position of China Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAMGold and China Gold.
Diversification Opportunities for IAMGold and China Gold
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between IAMGold and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding IAMGold and China Gold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Gold International and IAMGold 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 IAMGold are associated (or correlated) with China Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Gold International has no effect on the direction of IAMGold i.e., IAMGold and China Gold go up and down completely randomly.
Pair Corralation between IAMGold and China Gold
Assuming the 90 days trading horizon IAMGold is expected to generate 1.0 times more return on investment than China Gold. However, IAMGold is 1.0 times more volatile than China Gold International. It trades about 0.24 of its potential returns per unit of risk. China Gold International is currently generating about 0.12 per unit of risk. If you would invest 1,279 in IAMGold on August 29, 2025 and sell it today you would earn a total of 873.00 from holding IAMGold or generate 68.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IAMGold vs. China Gold International
Performance |
| Timeline |
| IAMGold |
| China Gold International |
IAMGold and China Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAMGold and China Gold
The main advantage of trading using opposite IAMGold and China Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAMGold position performs unexpectedly, China 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 China Gold will offset losses from the drop in China Gold's long position.| IAMGold vs. Constellation Software | IAMGold vs. Computer Modelling Group | IAMGold vs. Applied Materials, | IAMGold vs. Canlan Ice Sports |
| China Gold vs. Primaris Retail RE | China Gold vs. GreenLight Metals | China Gold vs. East Africa Metals | China Gold vs. SalesforceCom CDR |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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