Correlation Between Loncor Gold and Monument Mining
Can any of the company-specific risk be diversified away by investing in both Loncor Gold and Monument Mining 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 Loncor Gold and Monument Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loncor Gold and Monument Mining Limited, you can compare the effects of market volatilities on Loncor Gold and Monument Mining 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 Loncor Gold with a short position of Monument Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loncor Gold and Monument Mining.
Diversification Opportunities for Loncor Gold and Monument Mining
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loncor and Monument is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loncor Gold and Monument Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Mining and Loncor Gold 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 Loncor Gold are associated (or correlated) with Monument Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Mining has no effect on the direction of Loncor Gold i.e., Loncor Gold and Monument Mining go up and down completely randomly.
Pair Corralation between Loncor Gold and Monument Mining
Assuming the 90 days horizon Loncor Gold is expected to generate 1.38 times less return on investment than Monument Mining. But when comparing it to its historical volatility, Loncor Gold is 1.65 times less risky than Monument Mining. It trades about 0.27 of its potential returns per unit of risk. Monument Mining Limited is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Monument Mining Limited on July 28, 2025 and sell it today you would earn a total of 42.00 from holding Monument Mining Limited or generate 140.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loncor Gold vs. Monument Mining Limited
Performance |
| Timeline |
| Loncor Gold |
| Monument Mining |
Loncor Gold and Monument Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loncor Gold and Monument Mining
The main advantage of trading using opposite Loncor Gold and Monument Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loncor Gold position performs unexpectedly, Monument Mining 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 Monument Mining will offset losses from the drop in Monument Mining's long position.| Loncor Gold vs. Tudor Gold Corp | Loncor Gold vs. Mayfair Gold Corp | Loncor Gold vs. Radisson Mining Resources | Loncor Gold vs. Banyan Gold Corp |
| Monument Mining vs. Dynacor Gold Mines | Monument Mining vs. Cerrado Gold | Monument Mining vs. White Gold Corp | Monument Mining vs. Mayfair Gold 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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