Correlation Between Montage Gold and Elamex SA
Can any of the company-specific risk be diversified away by investing in both Montage Gold and Elamex SA 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 Elamex SA 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 Elamex SA de, you can compare the effects of market volatilities on Montage Gold and Elamex SA 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 Elamex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Gold and Elamex SA.
Diversification Opportunities for Montage Gold and Elamex SA
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Montage and Elamex is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Montage Gold Corp and Elamex SA de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elamex SA de 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 Elamex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elamex SA de has no effect on the direction of Montage Gold i.e., Montage Gold and Elamex SA go up and down completely randomly.
Pair Corralation between Montage Gold and Elamex SA
Assuming the 90 days trading horizon Montage Gold Corp is expected to generate 1.39 times more return on investment than Elamex SA. However, Montage Gold is 1.39 times more volatile than Elamex SA de. It trades about 0.2 of its potential returns per unit of risk. Elamex SA de is currently generating about 0.13 per unit of risk. If you would invest 595.00 in Montage Gold Corp on September 6, 2025 and sell it today you would earn a total of 260.00 from holding Montage Gold Corp or generate 43.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Gold Corp vs. Elamex SA de
Performance |
| Timeline |
| Montage Gold Corp |
| Elamex SA de |
Montage Gold and Elamex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Gold and Elamex SA
The main advantage of trading using opposite Montage Gold and Elamex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Gold position performs unexpectedly, Elamex SA 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 Elamex SA will offset losses from the drop in Elamex SA's long position.| Montage Gold vs. Diversified Royalty Corp | Montage Gold vs. CubicFarm Systems Corp | Montage Gold vs. Brookfield Investments | Montage Gold vs. AJA Health and |
| Elamex SA vs. Shenzhen Investment Holdings | Elamex SA vs. Puhui Wealth Investment | Elamex SA vs. Regal Real Estate | Elamex SA vs. Beazer Homes USA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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