Correlation Between US GoldMining and Alibaba Health
Can any of the company-specific risk be diversified away by investing in both US GoldMining and Alibaba Health 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 US GoldMining and Alibaba Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US GoldMining Common and Alibaba Health Information, you can compare the effects of market volatilities on US GoldMining and Alibaba Health 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 US GoldMining with a short position of Alibaba Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of US GoldMining and Alibaba Health.
Diversification Opportunities for US GoldMining and Alibaba Health
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between USGO and Alibaba is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding US GoldMining Common and Alibaba Health Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Health Infor and US GoldMining 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 US GoldMining Common are associated (or correlated) with Alibaba Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Health Infor has no effect on the direction of US GoldMining i.e., US GoldMining and Alibaba Health go up and down completely randomly.
Pair Corralation between US GoldMining and Alibaba Health
Given the investment horizon of 90 days US GoldMining Common is expected to generate 1.47 times more return on investment than Alibaba Health. However, US GoldMining is 1.47 times more volatile than Alibaba Health Information. It trades about 0.04 of its potential returns per unit of risk. Alibaba Health Information is currently generating about -0.06 per unit of risk. If you would invest 933.00 in US GoldMining Common on September 11, 2025 and sell it today you would earn a total of 55.00 from holding US GoldMining Common or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US GoldMining Common vs. Alibaba Health Information
Performance |
| Timeline |
| US GoldMining Common |
| Alibaba Health Infor |
US GoldMining and Alibaba Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US GoldMining and Alibaba Health
The main advantage of trading using opposite US GoldMining and Alibaba Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US GoldMining position performs unexpectedly, Alibaba Health 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 Alibaba Health will offset losses from the drop in Alibaba Health's long position.| US GoldMining vs. Westwater Resources | US GoldMining vs. Nova Minerals Limited | US GoldMining vs. BioHarvest Sciences Common | US GoldMining vs. American Vanguard |
| Alibaba Health vs. Sartorius Aktiengesellschaft | Alibaba Health vs. Olympus | Alibaba Health vs. bioMrieux SA | Alibaba Health vs. Shionogi Co Ltd |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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