Correlation Between Montage Gold and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Montage Gold and Mayfair 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 Montage Gold and Mayfair Gold 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 Mayfair Gold Corp, you can compare the effects of market volatilities on Montage Gold and Mayfair 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 Montage Gold with a short position of Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Gold and Mayfair Gold.
Diversification Opportunities for Montage Gold and Mayfair Gold
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Montage and Mayfair is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Montage Gold Corp and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp 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 Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Montage Gold i.e., Montage Gold and Mayfair Gold go up and down completely randomly.
Pair Corralation between Montage Gold and Mayfair Gold
Assuming the 90 days trading horizon Montage Gold Corp is expected to generate 0.83 times more return on investment than Mayfair Gold. However, Montage Gold Corp is 1.21 times less risky than Mayfair Gold. It trades about 0.2 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about 0.09 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Montage Gold Corp vs. Mayfair Gold Corp
Performance |
| Timeline |
| Montage Gold Corp |
| Mayfair Gold Corp |
Montage Gold and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Gold and Mayfair Gold
The main advantage of trading using opposite Montage Gold and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Gold position performs unexpectedly, Mayfair 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 Mayfair Gold will offset losses from the drop in Mayfair Gold'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 |
| Mayfair Gold vs. Delaware Investments Florida | Mayfair Gold vs. Ausnutria Dairy | Mayfair Gold vs. Retail Food Group | Mayfair Gold vs. BG Foods |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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