Correlation Between US GoldMining and Mercer International
Can any of the company-specific risk be diversified away by investing in both US GoldMining and Mercer International 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 Mercer International 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 Mercer International, you can compare the effects of market volatilities on US GoldMining and Mercer International 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 Mercer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of US GoldMining and Mercer International.
Diversification Opportunities for US GoldMining and Mercer International
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between USGO and Mercer is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding US GoldMining Common and Mercer International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercer International 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 Mercer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercer International has no effect on the direction of US GoldMining i.e., US GoldMining and Mercer International go up and down completely randomly.
Pair Corralation between US GoldMining and Mercer International
Given the investment horizon of 90 days US GoldMining Common is expected to generate 1.24 times more return on investment than Mercer International. However, US GoldMining is 1.24 times more volatile than Mercer International. It trades about 0.05 of its potential returns per unit of risk. Mercer International is currently generating about -0.18 per unit of risk. If you would invest 913.00 in US GoldMining Common on September 10, 2025 and sell it today you would earn a total of 75.00 from holding US GoldMining Common or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US GoldMining Common vs. Mercer International
Performance |
| Timeline |
| US GoldMining Common |
| Mercer International |
US GoldMining and Mercer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US GoldMining and Mercer International
The main advantage of trading using opposite US GoldMining and Mercer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US GoldMining position performs unexpectedly, Mercer International 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 Mercer International will offset losses from the drop in Mercer International'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 |
| Mercer International vs. American Vanguard | Mercer International vs. Lavoro Limited Class | Mercer International vs. Bioceres Crop Solutions | Mercer International vs. US GoldMining Common |
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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