Correlation Between Global Crossing and US GoldMining
Can any of the company-specific risk be diversified away by investing in both Global Crossing and US GoldMining 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 Global Crossing and US GoldMining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Crossing Airlines and US GoldMining Common, you can compare the effects of market volatilities on Global Crossing and US GoldMining 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 Global Crossing with a short position of US GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Crossing and US GoldMining.
Diversification Opportunities for Global Crossing and US GoldMining
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and USGO is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines and US GoldMining Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US GoldMining Common and Global Crossing 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 Global Crossing Airlines are associated (or correlated) with US GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US GoldMining Common has no effect on the direction of Global Crossing i.e., Global Crossing and US GoldMining go up and down completely randomly.
Pair Corralation between Global Crossing and US GoldMining
Assuming the 90 days horizon Global Crossing Airlines is expected to under-perform the US GoldMining. But the otc stock apears to be less risky and, when comparing its historical volatility, Global Crossing Airlines is 1.28 times less risky than US GoldMining. The otc stock trades about -0.05 of its potential returns per unit of risk. The US GoldMining Common is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 945.00 in US GoldMining Common on September 13, 2025 and sell it today you would earn a total of 52.00 from holding US GoldMining Common or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Crossing Airlines vs. US GoldMining Common
Performance |
| Timeline |
| Global Crossing Airlines |
| US GoldMining Common |
Global Crossing and US GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Crossing and US GoldMining
The main advantage of trading using opposite Global Crossing and US GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing position performs unexpectedly, US GoldMining 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 US GoldMining will offset losses from the drop in US GoldMining's long position.| Global Crossing vs. dynaCERT | Global Crossing vs. Cebu Air ADR | Global Crossing vs. Vow ASA | Global Crossing vs. Harbor Diversified |
| US GoldMining vs. Westwater Resources | US GoldMining vs. Nova Minerals Limited | US GoldMining vs. BioHarvest Sciences Common | US GoldMining vs. American Vanguard |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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