Correlation Between Golden Metal and Calculus VCT

Can any of the company-specific risk be diversified away by investing in both Golden Metal and Calculus VCT 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 Golden Metal and Calculus VCT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Golden Metal Resources and Calculus VCT plc, you can compare the effects of market volatilities on Golden Metal and Calculus VCT 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 Golden Metal with a short position of Calculus VCT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Metal and Calculus VCT.

Diversification Opportunities for Golden Metal and Calculus VCT

0.0

Correlation Coefficient

Golden Metal  Calculus VCT

Pay attention - limited upside

The 3 months correlation between Golden and Calculus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Golden Metal Resources and Calculus VCT plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calculus VCT plc and Golden Metal 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 Golden Metal Resources are associated (or correlated) with Calculus VCT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calculus VCT plc has no effect on the direction of Golden Metal i.e., Golden Metal and Calculus VCT go up and down completely randomly.

Pair Corralation between Golden Metal and Calculus VCT

If you would invest  3,800  in Golden Metal Resources on April 24, 2025 and sell it today you would earn a total of  2,700  from holding Golden Metal Resources or generate 71.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Golden Metal Resources  vs.  Calculus VCT plc

Golden Metal Resources

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Metal Resources are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Golden Metal unveiled solid returns over the last few months and may actually be approaching a breakup point.

Calculus VCT plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calculus VCT plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Calculus VCT is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Golden Metal and Calculus VCT

The main advantage of trading using opposite Golden Metal and Calculus VCT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Metal position performs unexpectedly, Calculus VCT 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 Calculus VCT will offset losses from the drop in Calculus VCT's long position.

The idea behind Golden Metal Resources and Calculus VCT plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.