Correlation Between Maple Leaf and Goldstorm Metals
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Goldstorm Metals 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 Maple Leaf and Goldstorm Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Foods and Goldstorm Metals Corp, you can compare the effects of market volatilities on Maple Leaf and Goldstorm Metals 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 Maple Leaf with a short position of Goldstorm Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Goldstorm Metals.
Diversification Opportunities for Maple Leaf and Goldstorm Metals
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maple and Goldstorm is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and Goldstorm Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldstorm Metals Corp and Maple Leaf 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 Maple Leaf Foods are associated (or correlated) with Goldstorm Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldstorm Metals Corp has no effect on the direction of Maple Leaf i.e., Maple Leaf and Goldstorm Metals go up and down completely randomly.
Pair Corralation between Maple Leaf and Goldstorm Metals
Assuming the 90 days trading horizon Maple Leaf Foods is expected to under-perform the Goldstorm Metals. But the stock apears to be less risky and, when comparing its historical volatility, Maple Leaf Foods is 3.39 times less risky than Goldstorm Metals. The stock trades about -0.03 of its potential returns per unit of risk. The Goldstorm Metals Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Goldstorm Metals Corp on August 31, 2025 and sell it today you would lose (1.00) from holding Goldstorm Metals Corp or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Leaf Foods vs. Goldstorm Metals Corp
Performance |
| Timeline |
| Maple Leaf Foods |
| Goldstorm Metals Corp |
Maple Leaf and Goldstorm Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Goldstorm Metals
The main advantage of trading using opposite Maple Leaf and Goldstorm Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Goldstorm Metals 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 Goldstorm Metals will offset losses from the drop in Goldstorm Metals' long position.| Maple Leaf vs. WELL Health Technologies | Maple Leaf vs. Orbit Garant Drilling | Maple Leaf vs. Pembina Pipeline Corp | Maple Leaf vs. Numinus Wellness |
| Goldstorm Metals vs. Constellation Software | Goldstorm Metals vs. Micron Technology, | Goldstorm Metals vs. Ramp Metals | Goldstorm Metals vs. NorthWest Healthcare Properties |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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