Correlation Between Montage Gold and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Montage Gold and Emerging Markets 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 Montage Gold and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Montage Gold Corp and Emerging Markets Sustainability, you can compare the effects of market volatilities on Montage Gold and Emerging Markets 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 Montage Gold with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Gold and Emerging Markets.
Diversification Opportunities for Montage Gold and Emerging Markets
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Montage and Emerging is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Montage Gold Corp and Emerging Markets Sustainabilit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Sus and Montage 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 Montage Gold Corp are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Sus has no effect on the direction of Montage Gold i.e., Montage Gold and Emerging Markets go up and down completely randomly.
Pair Corralation between Montage Gold and Emerging Markets
Assuming the 90 days trading horizon Montage Gold Corp is expected to generate 3.96 times more return on investment than Emerging Markets. However, Montage Gold is 3.96 times more volatile than Emerging Markets Sustainability. It trades about 0.18 of its potential returns per unit of risk. Emerging Markets Sustainability is currently generating about 0.05 per unit of risk. If you would invest 592.00 in Montage Gold Corp on September 10, 2025 and sell it today you would earn a total of 233.00 from holding Montage Gold Corp or generate 39.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Gold Corp vs. Emerging Markets Sustainabilit
Performance |
| Timeline |
| Montage Gold Corp |
| Emerging Markets Sus |
Montage Gold and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Gold and Emerging Markets
The main advantage of trading using opposite Montage Gold and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Gold position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Montage Gold vs. Allied Gold | Montage Gold vs. Ivanhoe Energy | Montage Gold vs. Skeena Resources | Montage Gold vs. Wesdome Gold Mines |
| Emerging Markets vs. Acadian Emerging Markets | Emerging Markets vs. Acadian Emerging Markets | Emerging Markets vs. Dfa International | Emerging Markets vs. Hennessy Nerstone Mid |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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